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SAN JOSE-Fairfield Residential has sold the recently completed Brickyard Place Apartments for $47 million or $267,045 per unit. The new owner, San Francisco-based AGI Capital Group, plans to sell off the 176-unit property as condominiums.
Brickyard Place is located on Third Street in Downtown San Jose, just south of San José State University. The building is situated above a subterranean parking garage and also has a large interior courtyard. The unit mix is one- and two- bedroom units averaging 828 sf.
The complex was reportedly in lease up when the buyer came along, so leasing was halted. The disposition was handled by the apartment division of the San Francisco-based brokerage Arroyo and Coates.
The company's financial group also assisted AGI in securing acquisition and conversion financing. The conversion financing included a budget for upgrades to the project, interest reserve and other project related costs through the sell out period.
Arroyo & Coates SVP Curtis Gardner represented Fairfield in the transaction. Gardner tells GlobeSt.com that the sale is "just another example of the demand for entry level housing in the Bay Area." AGI's COO Frank Chan did not respond to a request for comment.
Typically, condo converters will pay 20% to 50% more for an apartment development than an income buyer would pay. In turn, the condo converter's goal is to sell the units for between 25% and 30% higher than it paid on a per unit basis. If that holds true, AGI will be trying to sell the Brickyard Place units for an average of just under $350,000.
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