Greystar Buys Sunnyvale Apartment Complex for $107MM

Greystar, Bay Area, Avana Sunnyvale, Sunnyvale, Archstone Sunnyvale Apartments, AvalonBay, Silicon Valley, East Bay, Peninsula, San Francisco, Marcus & Millichap, IPA, Institutional Property Advisors

By Vladimir Bosanac

Charleston, SC-based Greystar is making its footprint in the Bay Area larger. The company just spent $107 million, or $557,291 per unit, to acquire the 192-unit apartment community Avana Sunnyvale located on 355 N. Wolfe Rd. The property was previously known as the Archstone Sunnyvale Apartments. The seller was AvalonBay, which purchased the property in 2013 as part of of portfolio, with various unlisted pricing allocations, according to Greystar’s Herbie Klotz, investment analyst who works out of the firm’s Irvine, Calif. office. Archstone had bought the property in February of 2012 for $63.15 million.

The apartment complex was developed in 1991. According to the apartments feature large windows, which allow for extra sunlight in the units and renovations in the complex have included adding granite counters, stainless steel appliances and hardwood floors in the kitchen area. Apartments have walk-in closets, and there is a storage unit attached to every apartment.

Apartments are a mix of studios, one-, two-, and three-bedroom units. The complex is located across the street from a retail complex that includes Lowe’s. It is also across the street from The King’s Academy Junior and Senior High School. The complex is also just blocks away from U.S. Highway 101 and Lawrence Expressway, two major throughways in Silicon Valley.

The appeal to Greystar, according to Klotz is its proximity to the Apple’s new AC3 Campus located at 222 North Wolfe Road, which San Francisco-based Jay Paul Co. purchased from Menlo Park-based Landbank Investments. Jay Paul paid $177.5 million for the property in December of 2015 and is developing it for Apple.

Greystar has been growing its presence in the Bay Area steadily over the years, today it owns properties in Silicon Valley, East Bay, Peninsula and San Francisco. Most recently, in July of this year, the company through a partnership with APG Asset Management N.V., GIC, Ivanhoé Cambridge and PGGM acquired Monogram Residential Trust, owner of five Northern California properties, for $3 billion. Just a week later, it was reported that the company spent another $35 million to buy two sites on 13.3-acres in Santa Clara from Intel.

The sellers were represented by Marcus & Millichap’s IPA (Institutional Property Advisors) division. The brokers on the deal were Salvatore S. Saglimbeni, senior managing director, Stanford Jones, executive managing director, and Philip Saglimbeni, senior managing director.

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