Los Gatos, CA – July 26, 2016 – Silicon Valley Multifamily Group (SVMG) announced today that it has facilitated the sale of the Evergreen Apartments, a 20-unit, two-story apartment complex in Santa Clara. The property sold for $6M, or $300,000 per door, and a 4.0% cap rate on current income.
An investment client of SVMG, The Powaii Family Partnership, sought assistance in their 1031 Exchange. SVMG identified a suitable property and contacted the owner, Holmes Business LLC, also a client of SVMG. SVMG presented the offer to the owner, represented both buyer and seller, and negotiated terms acceptable to both the parties.
The property is located in an area of Santa Clara considered to be an ideal location for High-Tech workers due to its proximity to technology companies and CalTrain, which provides rail transportation up the Peninsula and into San Francisco. Due to robust employment in High-Tech this area has seen double-digit rent growth since 2011. Several other multifamily properties on the same block have been fully renovated to take advantage of the demand in quality housing for technology workers. Additionally, new single-, and multi-family developments in the area have either been recently completed or are currently under construction.
The Evergreen Apartments were built in 1961. The complex has 20 units of 1-, 2-, and 3-bedroom units on a 28,000 square foot lot. The new owner intends to renovate the building to provide quality housing and in so doing, increase the property’s value.
Michael Shields, CCIM and Managing Director for Silicon Valley Multifamily Group, represented both buyer and seller of the property. “Santa Clara is a unique opportunity for both sellers and buyers as it offers current sellers very high asset values, as well as high rents for buyers along with high potential for continued asset appreciation value,” noted Shields. “The rental market is and will continue to be very robust in Santa Clara because of low inventory and strong employment in the tech industry fueled by a robust local economy.”
About Silicon Family Multifamily Group
Since 2005, Silicon Valley Multifamily Group has specialized in the brokerage of commercial investments focusing on multifamily, net leased investments, and medical office product in Northern California. Silicon Valley Multifamily Group typically represents buyers and sellers of apartment buildings from 4 to 100 units in size in the San Francisco Bay Area, medical office product in Northern California, and net-leased investments across the nation. For more information on Silicon Valley Multifamily Group, please visit www.siliconvalleymultifamily.com/