SAN JOSE, Calif., Dec. 7, 2012 – Institutional Property Advisors (IPA), a multifamily brokerage division of Marcus & Millichap serving the needs of institutional and major private investors, has arranged the sale of Willow Lake Apartment Homes, a 508-unit apartment community in San Jose. The sales price of $148 million represents a price of approximately $291,000 per unit.
Stan Jones, an executive vice president investments; Phil Saglimbeni, a vice president investments; and Sal Saglimbeni, a vice president investments, advised the seller, The Sobrato Organization. The buyer is Essex Property Trust.
“With 12.5 percent rent growth over the last 12 months and an average occupancy of 96.4 percent, San Jose’s market fundamentals are strong and getting stronger,” Jones says. “Rental demand here is now at one of the highest levels since 2001, resulting in a year-over-year vacancy decline of 60 basis points. Furthermore, rental demand growth is predicted to exceed additions to existing stock,” Jones continues.
“The combination of Willow Lake’s strong operating history, embedded loss-to-lease and future reposition story was especially compelling for buyers targeting core Silicon Valley locations,” adds Phil Saglimbeni. “The property is also condo-mapped, affording the owner an alternative exit strategy,” he concludes.
Willow Lake was constructed in three phases; 282 units in 1989, 126 units in 1990 and 100 units in 1997. The asset features unique architectural details, exceptional floor plans and a resort-like feel bolstered by a large lake that meanders through the site. The community offers a diverse mix of well-designed one-, two- and three-bedroom floor plans averaging 929 square feet. In keeping with the active lifestyles of today’s renters, residents enjoy two resort-style pools, three spas, a fitness center with newer equipment, a community lounge and a business center.
The property is conveniently located minutes from San Jose’s thriving downtown district, home to hundreds of restaurants, bars, performing arts and sporting venues, museums, and employers such as Adobe Systems, Cisco Systems and eBay. Employers in the surrounding Silicon Valley include Apple, Google, IBM, Hewlett-Packard, Facebook, National Semiconductor, Applied Materials, Intel, Netflix and Advanced Micro Devices.
Willow Lake offers convenient access to Caltrain and the VTA Light Rail Network, along with regional and local public rail lines. Commuters enjoy easy access to interstates 680 and 880, state routes 87, 237, 85 and 17 and U.S. Highway 101.