SANTA CLARA — A big Santa Clara apartment complex has been bought for more than $50 million by investors in a deal that indicates ongoing interest in the Bay Area residential real estate market despite economic uncertainties.
Montecito Apartments was bought by an affiliate of Pacific Urban Investors for $50.7 million, according to documents filed on Oct. 24 with the Santa Clara County Recorder’s Office.
The 110-unit residential complex is located at 3760 and 3765 Tamarack Lane in Santa Clara, the public property records show.
Palo Alto-based Pacific Urban also obtained a $31.8 million loan from Comerica Bank at the time of the apartment purchase, according to the county documents.
San Mateo-based Prometheus Real Estate Group sold Montecito Apartments to Pacific Urban. The apartment complex was built in 1970, according to the apartments.com website.
The deal suggests that investors of varying types still hunger in a big way for apartment complexes in the region.
Among the other recent noteworthy purchases in the South Bay and East Bay:
— On Oct. 11, FPA Multifamily paid $134.8 million for three San Jose apartment properties with a combined 415 units.
— On Oct. 7, a group linked to Zurich asset management paid $53 million for the 93-unit Santana Terrace apartment complex in Santa Clara.
— In September 2022, Stanford University, acting through an obscure affiliate, employed a byzantine set of transactions to purchase a 759-unit property in Palo Alto that’s known as Oak Creek Apartments. The university bought the apartments, which are next to the college, as a way to quickly increase the supply of housing for its faculty.
In September 2022, The Arroyo Residences, a 100-unit apartment complex in Walnut Creek, was bought for $66 million by Rockwood, a real estate investment firm.
— In August 2022, an 18-story, 178-unit apartment tower near downtown Oakland was bought by FPA Multifamily for $55.5 million.
— In August 2022, the 94-unit McClellan Terrace complex in Cupertino was bought by Prometheus Real Estate Group for $52 million.
— In July 2022, The 551-unit Platform Urban complex was bought for $320 million by a joint venture led by MG Properties and Oaktree Capital Management.
— That same month, the 333-unit Eleanor Apartments in Milpitas was bought for $193 million by MG Properties.
— In May 2022, Pacific Urban paid $127 million for Pathfinder Village apartments in Fremont.
The new owner of Montecito Apartments in Santa Clara, Pacific Urban, describes itself as a veteran investor in apartment buildings, with properties in multiple states.
“Pacific Urban Investors is a private, multifamily investment company seeking to acquire apartment properties in major U.S. markets,” the company states in a post on its website.
These locations include Santa Clara County, the East Bay, San Mateo County and San Francisco.
The company has been in business for nearly a quarter century.
“Founded in 1998, Pacific has invested in apartment communities valued at over $8 billion,” Pacific Urban states in the website post.
Source: www.mercurynews.com