In a sign of continued interest in multifamily properties across the region, Los Angeles-based Canyon Partners spent $49 million, or $526,881 per unit, to acquire the 93-unit Charter Palms property in Sunnyvale, according to public documents filed with the county. The sale, which closed on October 5, was brokered by Compass Commercial’s Ray Rodriguez and Tony Zizzo. The seller was an entity associated with the Anderson and Shelchuk families.
“The Charter Palms was positioned in an unbeatable location in Sunnyvale. The property had been a part of a long-term partnership for over 30 years and the sellers determined that now was the best time to transition from the asset and diversify into other investments,” said Rodriguez and Zizzo in a prepared statement.
The property is located across four parcels at 676-680 Bellflower and 679-683 Garland in Sunnyvale totaling 4.13 acres. The units are all two-story townhome style units. There are three 3-bed-2-bath units and 87 2-bed-1.5-bath units in total.
The units have been remodeled recently with new kitchen cabinetry, granite countertops, stainless steel appliances, modern flooring, and storage. Each apartment also features a private balcony or patio and full-size in-home laundry. The property is walking distance to Downtown Sunnyvale with abundant shopping, dining, fitness options, and grocery stores. Nearby public transportation includes Caltrain (Sunnyvale station) and El Camino Real bus routes offering an easy commute to Silicon Valley employers, according to the brokerage team.
“We positioned the opportunity to an off-market buyer with a vision for the property over the next 5 years. We assisted the owners in the sale of the Charter Palms while helping them complete a 1031 exchange into separate assets for each partner,” stated Rodriguez and Zizzo.
The interest from investors looking to expand their multifamily footprint across the greater Bay Area region has continued unabated since the state of the global pandemic. Recently, a number of investment funds have announced increased interest in the space, which only means assets like the Charter Palms may have multiple options when they hit the market.
Earlier this month, The Registry reported that Irvine, Calif.-based Sares Regis was targeting a $500 million raise for an apartment fund with a focus on West Coast markets. Los Angeles-based Cityview also added to those efforts by announcing $400 million in commitments for a multifamily investment fund also focused on the Western United States. Both have the backing of pension fund money from across the country.