By Meghan Hall
Equity Residential has expanded its presence in one of the region’s hottest cities, San Jose, with the acquisition of The Lex Apartments at 5560 Lexington Ave. at the end of June. According to public property documents, Equity Residential purchased the asset for $180.5 million, or $467,616 per unit, in cash
The seller was Santa Clara, Calif.-based ROEM Development Corporation, who originally purchased the 4.69-acre property in March 2015.
According to Equity Residential’s website, the complex includes a state-of-the-art fitness center, outdoor lounge with firepit, a bocce ball court, pet wash station and yoga room. A salt water pool and spa, business center and game room are also part of the Lex Apartments amenities package. The interior of the units feature modern finishes such as stainless steel appliances, hard surface flooring, built-in USB outlets, walk-in showers and Nest thermostats.
The complex has an array of studios, one- and two-bedroom units. Studios start at $2,490 per month, one-bedroom start at $2,535 per month and two-bedrooms start at $2,760 per month. The units range in size from roughly 633 to more than 1,000 square feet.
The property is located just adjacent to a busy commercial corridor in south San Jose, one of the cities’ rapidly growing submarkets. Highway 101 as well as State Route 85 are both easily accessible, as are multiple shopping centers anchored by retailers such as Target, Lowe’s Home Improvement, and FoodMaxx.
Equity Residential also owns the Verde Apartments on Wong Dr., as well as the Vista 99 Apartments on Vista Montana Road. Both assets are located in San Jose as well. Equity Residential is also active throughout the Bay Area, and submitted plans for more than 200 apartments in Mountain View in April. The company also launched pre-leasing for 855 Brannan in San Francisco in May.
As firms such as Adobe, Google and others continue to build a physical presence in the city of San Jose, demand for housing continues to climb. In August of this year, the 130-unit The Firestone, secured $67MM in JV Equity and Construction Financing. In May, ROEM proposed another residential development in San Jose; the 230-unit development is planned for Meridian Avenue, 15 minutes from downtown San Jose.