By Jon Peterson
Palo Alto-based Pacific Urban Residential has acquired a total of 193 units comprised of 116-unit Sequoia Glen and 77-unit Orchard Ridge properties in San Jose, CA. While the company declined to state the purchase price and the name of the seller, public records indicate that sale price was $55.5 million, or approximately $287,500 per unit.
“San Jose continues to be a focus of ours based on strong economic conditions. This market has had some of the strongest job growth in the country and correspondingly, solid rent growth. Additionally, the property is situated across from the Valley Transportation Authority light rail station, providing residents with easy access to local and commuter employment nodes” says Kendrick Askew, vice president, Investments with Pacific Urban Residential. The property is located at 2130 Southwest Expressway, according to the property’s Web site.[contextly_sidebar id=”mwzm6iHMwYpEq9bnozf9KziTGqFSnX2Y”]Pacific Urban purchased Sequoia and Orchard on behalf of its institutional pension venture, Pacific Multifamily Investors (PMI). “We seek compelling long-term locations and durable cash flow characteristics. Our ‘vintage asset’ investment strategy focuses on acquiring existing apartment communities in established, job-centric markets. I am pleased our communities provide our consumer residents with an attractive value proposition. Investments such as Sequoia and Orchard offer consumer’s rents lower than what is offered at newer luxury communities while providing the same proximity to jobs, schools and retail,” said Al Pace, president for Pacific Urban.
Pacific Urban continues to seek quality existing multifamily investments throughout California, Washington, Oregon and in Denver, Colorado. The company’s West Coast portfolio today stands at over 7,000 units with a value exceeding $2 billion. Since its founding in 1998, the company has acquired over $3.5 billion of multifamily investments.