San Jose, Calif.—A partnership between TruAmerica Multifamily, Vista Investment Group and Western Investments Capital, has acquired Avenel Apartments in San Jose, Calif., for $38 million. The property is a 168-unit multifamily community originally built in 1987.
Built on about 8.5 acres, the low-density property is comprised of 14 two-story structures and features a park-like landscape that includes a number of water features. The one- and two-bedroom units feature four floor plans and range from 616 square feet to 928 square feet.
TruAmerica intends to upgrade the unit interiors, which will include stone kitchen countertops, faux wood flooring in some units, and upgrading the balconies on second-floor units. The business plan also calls for the refurbishment of common areas, such as the modernization of the existing fitness center and leasing center, conversion of an underutilized laundry room to a game room, exterior building and landscape improvements, and the construction of an outdoor gas fire pit seating area.
Upon the completion of the Berryessa Bay Area Rapid Transit Station a block away from the property, Avenel will count as transit-oriented. The station will be the first BART station in San Jose, with completion slated for 2018. A new 120-acre mixed used development—including 365,000 square feet of commercial and industrial space, a public park and a new elementary school—is also planned adjacent the BART station.
The sale was brokered by Stanford Jones, Salvatore Saglimbeni and Philip Saglimbeni of Institutional Property Advisors, a multifamily brokerage division of Marcus & Millichap. Following the recent $81 million closing of Piazza D’Oro in Oceanside, Calif., the purchase of Avenel Apartments represents the second acquisition in two weeks for the newly formed TruAmerica Multifamily. The company is an LA-based real estate investment firm led by Robert E. Hart and the Guardian Life Insurance Company of America.