San Jose, Calif.—Institutional Property Advisors (IPA), a division of Marcus & Millichap, has arranged the $148 million sale of Willow Lake Apartment Homes in San Jose, Calif. This sale equals approximately $291,000 per unit. The buyer was Essex Property Trust.
“With 12.5 percent rent growth over the last 12 months and an average occupancy of 96.4 percent, San Jose’s market fundamentals are strong and getting stronger,” Stan Jones, executive vice president investments, IPA, says. “Rental demand here is now at one of the highest levels since 2001, resulting in a year-over-year vacancy decline of 60 basis points. Furthermore, rental demand growth is predicted to exceed additions to existing stock.”
Willow Lake, which contains 508 units, was constructed in three phases. The first phase was 282 units in 1989, the second was 126 units in 1990 and the third phase included 100 units in 1997. The community features a mix of one-, two- and three-bedroom units averaging 929 square feet.
Amenities for Willow lake include two resort-style swimming pools, three spas, a fitness center, a community lounge and a business center.
The community also benefits from an excellent location. Willow Lake is located near San Jose’s downtown district, which includes restaurants, bars, sports venues and museums. Additionally, employers such as Adobe Systems, Cisco Systems and eBay are nearby. Willow Lake is also convenient to Caltrain and the VTA Light Rail Network, as well as major highways.
“The combination of Willow Lake’s strong operating history, embedded loss-to-lease and future reposition story was especially compelling for buyers targeting core Silicon Valley locations,” Phil Saglimbeni, vice president investments, IPA, says. “The property is also condo-mapped, affording the owner an alternative exit strategy.”