(To read more on the multifamily market, click here.)
SANTA CLARA, CA-The 486-unit Summerwood Apartments here has changed hands for $105 million. Rreef America LLC acquired the garden-style property from Hoffman Associates. The sale closed 10 days ago.
The property was listed and sold by Bill Huberty, Matt Holmes and John Eichelberger of CB Richard Ellis' Multi-Housing team. The brokerage firm describes Summerwood as a "highly attractive rehab opportunity" and says the $224,000 per-unit purchase price "sets a new watermark for the pricing of large assets of this vintage in Northern California."
Built in 1970 on 20.5 acres at 444 Saratoga Ave., the complex has 42 buildings including a leasing office and one recreational building. A source with CBRE tells GlobeSt.com that occupancy at Summerwood was 97% at time of closing. The average unit size is 972 sf and the average asking rental rate is $1,401, according to the source.
Summerwood is the third large apartment sale in the past couple of weeks. Last week, publicly held Archstone acquired the 575-unit Jefferson @ Bay Meadows luxury community in San Mateo for $220 million. The seven-building complex was built in 2001 at 1101 Park Place, which is between the Bay Meadows Racetrack and Highway 101. The seller was the developer, Irving, TX-based JPI. Archstone has not acknowledged the transaction.
Also last week, Archstone announced the acquisition of St. Francis Place, a 410-unit high-rise community at the corner of Third Street and Folsom Street in Downtown San Francisco. The $170-million purchase price was funded primarily through tax-deferred exchange proceeds and $53 million of operating partnership units.
Between December and March, Archstone paid $166 million for two neighboring projects in San Bruno, the 185-unit Paragon Apartments ($65.1 million) and the 300-unit Meridian Luxury Apartments ($101.2 million). The seller in both instances was the developer, a joint venture of Regis Homes, TMG Partners and MacFarlane Partners.
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