JB Matteson Acquires Ilara Apartments in Silicon Valley for $102MM

Milpitas JB Matteson Great Mall AC Transit BART San Jose Silicon Valley North San Jose VTA Bay Area


Property Profile

Address: 1201 South Main Street, Milpitas, California
Units: 200 units totaling 182,795 square feet
Parking: 345 spaces in attached six-story parking garage
Land Area: 2.76 acres
Completed: 2015

Investment Highlights

  • Newly constructed Class A multifamily property located in Silicon Valley near dense job base in North San Jose
  • Modern, state of the art design with high quality improvements and superior amenities
  • Transit-oriented community within walking distance of LTA Light Rail, bus routes, AC Transit, and new BART station under construction
  • Walking distance to Great Mall with over 1.3 million square feet of retail, restaurants, and movie theatre
  • Average household income of $123,000 and median home price of $760,000 within three mile ring

Investment Summary

Ilara Apartments comprises 200 newly built multifamily units located in the dense North San Jose submarket of Silicon Valley.  The property was 95% occupied at closing.  The modern Class A transit oriented community enjoys excellent access to a robust Silicon Valley job base.  The property is within walking distance to the Great Mall / Main Transit Center, VTA Light Rail, and the new BART station under construction.  Nearby retail amenities include the Great Mall, McCarthy Ranch Marketplace, Beresford Square Shopping Center, @First, and Rivermark Village.

The property is beautifully designed and built with state-of-the-art amenities and four different finish levels.  Studio, one-bedroom, and two-bedroom floor plans average 914 square feet.   Unit amenities include nine-foot ceilings, central HVAC, washer/dryers, oversized windows, and hard surface flooring in living areas.  The wrap-around parking garage provides 1.7 spaces per unit with direct access to each resident level.

Investment Strategy

Ilara Apartments is JB Matteson’s fifth Bay Area apartment investment in the past three years.

The Company’s investment strategy is to accumulate a high quality portfolio of newer (built since 2000), Class A apartments comprising 100 units or greater situated in close-in locations of major cities on the West Coast. The West Coast markets tend to outperform other markets in the country in terms of both occupancy and rent growth, resulting in cash flow growth and appreciation.

About JB Matteson

JB Matteson is a 50-year old privately held investment manager located on the San Francisco peninsula. On behalf of several hundred private capital investors, JB Matteson owns and operates Class A, investment grade multifamily properties located in major metropolitan areas on the West Coast. The operating partners of JB Matteson each have over 30 years of real estate investment management experience. The Company mission is to provide stable and increasing cash flow distributions from high quality, investment grade multifamily assets utilizing modest amounts of financial leverage.

JB Matteson’s portfolio is diversified among major metropolitan areas along the West Coast. The portfolio includes both urban mixed-use assets and suburban garden style apartments. The portfolio enjoys diversification by metropolitan area, employment drivers, and resident profile. Investment criteria include regional economic factors such as employment drivers, population density, public transportation, walkability, supply constraints, replacement cost, property functionality, and opportunity to improve operations. For more information, see JBMatteson.com

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