116-Unit Via Reggio Apartments in San Jose Trades for $53.3MM

Bay Area, San Jose, Via Reggio Apartments, Klingbeil Capital Management, Marcus & Millichap

By Vladimir Bosanac

Interest from investors in Bay Area multifamily properties has rebounded over the last couple of years as occupancy returned to near pre-COVID levels and rents gained momentum over the last year. One recent transaction in San Jose saw an investment company from Manassas, VA invest $53.3 million, or $459,482 per unit, to acquire the 116-Unit Via Reggio Apartments from a local investor. The buyer was Klingbeil Capital Management, and the local investor was an entity associated with Doris S. Davis from San Jose.

The transaction was first reported by the San Jose Mercury News.

Via Reggio Apartments is located at 1277 San Tomas Aquino Road in San Jose. The 1988 vintage property has three stories, and it is located in the Anderson West neighborhood of San Jose between Campbell, Saratoga, Cupertino and Santa Clara. Anderson West is a small neighborhood known for its abundance of shopping options, according to the property’s listing on apartments.com. The property offers a mix of studio, one- and two-bedroom units. 

The seller was represented by CBRE’s Jefrey Henderson and Jon Teel, according to published reports, and the property has been on the market since May of this year.

San Jose’s rental market has bounced back in a big way, with more than 9,500 units of net absorption logged from April 2021 through March 2022, according to a recent, second quarter of 2022 Marcus & Millichap San Jose Metro Area Multifamily Market Report. All nine submarkets recorded vacancy contractions of at least 100 basis points over the past four quarters ended in March. Each area posted an annual effective rent gain exceeding 10 percent as well, added the report.

From an investment perspective, deal flow during 2021 was stronger than the 2020 total, but just below the 2019 register. Marcus & Millichap sees improving metrics across the industry increase demand for properties across San Jose, although transactions above $10 million, have been slower to return. The average sale price held relatively steady in 2021, growing by less than 1 percent to $397,900 per unit, according to the report.

West Coast Commercial Real Estate News