San Jose Apartments Command $96M
- Dec 06, 2016
San Jose, Calif.—TH Real Estate has acquired The Grove, a 331-unit apartment community in San Jose, Calif., for $95.5 million, from Kennedy Wilson Multifamily.
“This asset aligns with one of our main multifamily investment strategies of acquiring quality communities with value-add potential in stable markets with positive long-term fundamentals,” Terry Senger of TH Real Estate, said. “We’ve successfully invested in such properties throughout all points in the investment cycle, and believe that current economic and demographic trends will continue to provide opportunities for multifamily investing that can result in strong performance for our institutional investors.”
Institutional Property Advisors represented the seller in the transaction.
“The Grove is centrally located in west San Jose, providing convenient access to major retail, dining and entertainment centers including Santana Row, Westfield Valley Fair, downtown San Jose, Willow Glen and Campbell,” Salvatore Saglimbeni, IPA’s executive director, told MHN. “The property is a short commute to many major employers in Silicon Valley including eBay, Netflix, Adobe, Cisco, San Jose City College and Santa Clara County Medical Center.”
Originally constructed in 1970, The Grove is situated in an expansive 11.76-acre park-like setting with a low density of 29 units per acre.
The apartment homes consist of studio, one-, two- and three-bedroom floor plans, all featuring fully equipped kitchens with complete appliance packages, separate dining areas, private balconies/patios, spacious closets and double-paned windows.
Community features include two resort-style swimming pools with furnished sundecks, a spa, fitness center, clubhouse, resident lounge, open greenbelts, outdoor barbecue area, gated access, covered parking and common area Wi-Fi capability.
According to Saglimbeni, given the prime location, the community is well positioned for renovations to the unit interiors, amenities and common areas.
The community is conveniently located minutes from I-280, I-17 and I-880, and employers including Valley Medical Center, Santa Clara University and the San Jose International Airport.