By Meghan Hall
Downtown San Jose is continuing to see avid interest from investors across property types. Following on the heels of a large office sale, One South Market, a luxury apartment complex, has traded hands. At the end of June, Essex Property Trust sold One South Market for $175 million, or about $561,000 per unit. The buyer was OSM Property LLC, affiliated with Lakevision Capital LLC, a U.S. subsidiary of a Chinese real estate company based in Hong Kong.
The Silicon Valley Business Journal was the first to report on the transaction.
Essex purchased the site for the residential tower in May of 2013 for $13.25 million, according to public records. Completed in 2015, the project cost about $145 million to construct. In April of 2019, Essex also bought out its 45 percent interest from an un-named institutional partner on the complex for $80.6 million. At the time, its valuation was about $179 million, nearly $574,000 per unit, according to reporting from The Registry at the time.
Today, the completed project totals 312 one-, two- and three-bedroom apartments as well as ground floor retail. Common amenities include a fitness center, pool and spa, as well as a rooftop sundeck. Units come equipped with stainless steel appliances, quartz countertops, vinyl floors and in-unit washer and dryers. According to popular listing site Apartments.com, units range in size from about 600 square feet to about 1,400 square feet. Rents for a one-bedroom begin at nearly $1,900 per month.
The apartment complex is located in the heart of downtown San Jose, just off of W. Santa Clara Street and State Route 57. The SAP Center, San Pedro Square and numerous shops and restaurants are all in close proximity. The property is also not far from 160West Santa Clara Street, a high-rise office tower that traded hands at the end of June for $132 million to Barrett Block Properties—a signal that downtown San Jose remains promising for investors.The buyer of One South Market, Lakevision Capital LLC, is based in Costa Mesa, Calif., and its parent company ranks as one of the top 10 real estate development and management firms in China, according to its website. The company’s core business includes property development, commercial operation and long-term rental apartments, and it seeks to invest in managing and developing Class A multifamily rental or for-sale properties in gateway markets throughout the United States. In addition to San Jose, the firm is active in New York, Boston, and Washington D.C., as well as San Francisco and Los Angeles.