(Read more on the multifamily market.)
SAN JOSE, CA-Hidden Willows Apartments, a 112-unit garden-style apartment complex here has changed hands for $22.3 million, or just under $200,000 per unit. Sares Regis Group of Northern California acquired the 28-year-old asset with equity provided by an undisclosed investment client of Blackrock Inc. and will manage the property and supervise renovations over the next 24 months. The seller was a private owner, Maclyn Morris.
SRGNC is a San Mateo, CA-based company affiliated with Sares Regis Group of Irvine, CA, whose portfolio of property and fee-based management contracts includes 14,500 rental apartments and 15 million sf of commercial and industrial space. New York City-based BlackRock is one of the world's largest publicly traded investment management firms, with $1.3 trillion under management as of the end of the third quarter.
Hidden Willows was built in 1979 and is located in the historic Willow Glen neighborhood of San Jose. Property amenities include a heated swimming pool and spa. Renovation plans include all new unit interiors, the addition of in-unit washers and dryers and a reconfiguration of the leasing office to incorporate a fitness facility.
Blackrock's acquisition director Robert Lewis describes the investment as "a good opportunity to acquire an in-fill multifamily property with potential upside based on the quality of the location and improving market fundamentals." SRGNC senior vice president of investments Kenneth Gladstein calls the asset an "under-managed property in a desirable submarket" that when renovated should "attain significantly higher rents."
Debt financing for the Hidden Willow acquisition was provided from Allstate Life Insurance Company through Jeff Weidell at Northmarq Capital in San Francisco. Brokers Stan Jones and Sal Saglimbeni with Marcus & Millichap in Palo Alto brought the deal to SRGNC.
This deal marks SRGNC's second commercial real estate investment with a BlackRock investment client this year. In August, a similar partnership paid approximately $40 million for a 12-story office tower and four adjacent one- and two-story office buildings in San Mateo, CA, that are collectively known as Bayview Plaza. The 200,000-sf (net rentable) complex was sold by Cornerstone Properties. Capmark Financial Group of San Mateo financed the investment, which is scheduled to include a $10-million repositioning.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
