Security Properties JV Acquires $24M San Jose Asset

Monte Vista Apartments. Image courtesy of Security Properties

Security Properties in a partnership with Hearthstone Foundation and Pacific Life Insurance Co. have acquired Monte Vista Senior Apartments, a 118-unit affordable housing community in San Jose, Calif.

Berkadia brokered the $23.6 million transaction, arranging the financing through Fannie Mae. The acquisition marks the seventh collaboration between Pacific Life and Security Properties since 2018. The deal closed on August 31st.

Steve TeSelle, senior director of Security Properties, said in prepared remarks that Monte Vista is a much-needed affordable housing community in a demanding market. Monte Vista Senior Apartments is an income- and rent-restricted community to senior residents earning between 30 and 50 percent of the area median income.

Located near Alum Rock Transit Center, the property is close to interstate 680 and Alum Rock Avenue, in proximity to retail centers, schools, dining and entertainment venues such as Ranging Water San Jose. Green areas like Emma Prusch Farm Park, Happy Hollow Park & Zoo and Japanese Friendship Garden are within a 4-mile radius from the community. Regional Medical Center is only 1.8 miles away from the property and Norman Y. Mineta San Jose International Airport is a 10-minute drive away.

Security Properties recently sold a 162-unit multifamily community for $48.5 million, in Bemerton, Wash. CBRE brokered the transaction.