By Jon Peterson
San Mateo-based Essex Properties Trust has paid $80.6 million to buy out its 45 percent interest from an un-named institutional partner on the One South Market apartment complex in San Jose. The general details about the deal were communicated by the public REIT in its 2019 first quarter earnings report. The public REIT now fully owns the 312-unit property located at 1 South Market Street in San Jose’s downtown core.
Essex’s payment for the property is based on the total, all in valuation of the property at $179 million, or nearly $574,000 per unit, which includes some value allocated to the retail space in the property. In conjunction with the acquisition, there was $86 million of mortgage debt that encumbered the property that was paid off.
Essex had initally acquired the site for One South Market in 2013. It had stated at that time that the property had a total construction cost of $145 million. It was completed in 2015, and it is 23 stories high.
One South Market is located in the heart of San Jose’s downtown district, close to San Pedro Square, which gives the residents of the complex many retail and entertainment options in the neighborhood. It also is close to Caltrain and light rail for its mass transportation options.
The property boasts a 91 walk score and a 77 transit score. It has a combination of one-, two- and three-bedroom apartments that feature modern amenities, including in-home washers and dryers, bike storage facilities, a fitness center and a swimming pool and spa. The property is also LEED Silver certified and features Chipotle, Earl of Sandwich, Bishops Cuts/Color and the Proper Cup retailers on the ground floor.