By Jon Peterson
Palo Alto-based Pacific Urban Residential paid $74.5 million, or roughly $365,200 per unit, to acquire the 204-unit Fremont Glen Apartments in Fremont located at 889 Mowry Avenue, according to sources that track the sales of apartments in that market.
The buyer of the property declined to comment on the purchase price of the property when contacted for this story.
“We do own several other properties in Fremont and think that it’s a strong apartment market. We have renamed Fremont Glen Sofi Fremont. The market in Fremont has shown good job growth including the Tesla plant. Renters in our complex can walk to the Fremont BART station. This gives them access to public transportation to their jobs in either San Francisco or San Jose,” says Chris Kober, director of portfolio operations for Pacific Urban.
The complex features 32 residential buildings. The one- and two-bedroom floor plans have an average size of approximately 784 square feet. There are 75 one-story cottage-style homes and 32 one-story apartment homes located over tuck-under parking. Community amenities include a fitness center, recreation room, resident lounge, resort-style swimming pool with furnished sundeck, and covered parking. Interiors feature formal dining areas, spacious private patios or balconies and washer/dryers.
The new owner is planning only a minor renovation to the property. This will include some upgrades to the inside of the units. “The renters in this property are a mixture that includes some engineers and families,” said Kober.
Built in 1973, the property is less than one mile from the Fremont BART station, and within walking distance of the 110-acre downtown Fremont redevelopment, which is expected to bring 500,000 square feet of commercial/retail space, 2.25 million square feet of office space, and 2.3 acres of park/open space, according to a statement. The 850-acre Warm Springs Innovation District, which is predicted to bring 20,000 new workers and 10 million square feet of new commercial space to the region by 2040, is within approximately seven miles of the apartment community.
The seller of the property was San Mateo-based Acacia Capital. It had owned the property since January of 2008 when it paid $40.3 million for the complex, according to public documents.
“The Bay Area continues to be one of the strongest rental markets in the country and opportunities to acquire well -located multifamily communities are rare. Freemont Glen Apartments provides new ownership with a value-add upside opportunity in an area supported by tremendous employment fundamentals, “said Stan Jones, an executive director with IPA, in a prepared statement.
Jones, along with IPA executive directors Phil Saglimbeni and Sal Saglimbeni, represented the seller, Acacia Capital.