Two medium-sized apartment complexes in San Jose and Fremont have sold, according to brokerage CB Richard Ellis Group Inc.
Pinebrook West, a 30-unit development at 35955 Fremont Blvd. in Fremont, sold for $4.8 million or $160,000 a unit, the Los Angeles-based broker said. Michael Henshaw with CBRE and Michael Mann with Encino-based broker Marcus & Millichap Real Estate Investment Services represented the buyer and seller. The buyer is 126 E. Grove LLC, CBRE said. The seller was identified as a local investor.
Also sold was 1445-1455 Kerley Drive in San Jose, a 20-unit complex. The property traded for $2.32 million or $116,000 a unit. CBRE’s Henshaw also participated in the deal as did Scott Kilpatrick of NAI BT Commercial, a large Northern California brokerage.
Both per unit prices were well below the average of $212,002 set in 2008 in the San Jose metropolitan area, according to data from New York’s Real Capital Analytics. Last year, 22 apartment properties sold in San Jose, Real Capital said, down from 47 in 2007.
Across the San Francisco Bay Area in 2008, 63 apartment complexes sold for an average of $202,128 a unit, down from 190 complexes in 2007 at $219,490 a unit.
Commercial-property investment sales have been hard hit by the credit crisis as lending economy-wide has slowed. But apartment sales have been less affected than other types of commercial property because financing is available from Fannie Mae and Freddie Mac.