The Bungalows at Mathilda, a 68-unit garden style multifamily property in Sunnyvale, California sold for $22.5 million, or approximately $331,000 per unit and at a 4.26 cap rate. The sale was announced by Marcus & Milichap who represented the seller, Interstate Equities Corporation, and helped procure the buyer. The people involved in the transaction were Adam Levin and Robert Johnston who work out of Marcus & Millichap’s Palo Alto office.
The property was under Interstate’s ownership for just under two years. Interstate had purchased the apartment community in September of 2014 for $16.1 million at 3.82 cap rate. At the time, the community was called The Floriana.
“At first, owners and agents were skeptical that this property could be sold at an acceptable price due to the fact that it fronts the 101 freeway,” said Levin in a statement.
The Bungalows at Mathilda is located on approximately two acres of land and has 37,136 square feet of livable area. In addition to exterior and interior renovations, the property includes many community amenities such as a swimming pool, barbecue area, private patios and vaulted ceilings in a number of units.
“The asset is in a world-class location in the heart of Silicon Valley and is an attractive choice for renters on the Peninsula because of the close proximity to major employers, including Google and Apple’s new campus that is still under construction,” Levin added.
The property has undergone extensive exterior and interior renovations over the past year. 36 of the 68 units have been completely renovated with designer finishes, leaving an opportunity for the new owners to further increase rental income through the completion of renovations.
“We recognized the appeal of this asset that is driven by Sunnyvale’s strong employment fundamentals and low vacancy levels, and we were able to secure a qualified, local family investor to successfully exchange into the property,” Levin concluded.