SummerHill Pays $81M for San Jose Community
The buyer will raze the existing buildings to develop 115 for-sale rowhouses at the site, using $70.4 million in construction financing.
SummerHill Apartment Communities has completed the $81 million acquisition of Meadowood Apartments, a 116-unit, rent-controlled community in Mountain View, Calif. Calson Properties sold the asset, according to Santa Clara County records. The buyer and seller had first entered into a purchase agreement for the asset in March 2019.
Located on 6 acres at 1555 W. Middlefield Road, the property was completed in 1971. The unit mix has one- and two-bedroom floorplans from 630 to 1,075 square feet. Amenities include a swimming pool and jacuzzi, a gym and laundry facilities.
The new owner intends to demolish the existing structures at the site and build 115 for-sale rowhouses instead. The city council approved the demolition in May, Mountain View Voice reported. Additionally, the buyer took out a $70.4 million construction loan from U.S. Bank for its new project at the time of the acquisition, public records show.
The site is a short distance from Bayshore Freeway and 13 miles northwest of downtown San Jose, a little more than 1 mile south of Google’s corporate headquarters and close to Microsoft’s Mountain View campus.
SummerHill is also developing another community in Santa Clara County. In 2018, the company broke ground on the 537-unit Nuevo 6 miles to the east. Wells Fargo originated a $139.7 million construction loan for the project.