Tuesday, March 18, 2014

HFF closes sale of 144-unit San Jose, CA value-add multi-housing community

Alterra San Jose Apartments, San Jose, CA

Kenneth Gladstein
SAN FRANCISCO, CA - HFF announced it has closed the sale of Alterra San Jose, a 144-unit multi-housing community in San Jose, California.

HFF marketed the property on behalf of the seller, Pacific Urban Residential and Hunt Companies. 

Pacific Urban Residential and Hunt previously acquired the property on an off-market basis in early 2011 experiencing significant increases in rents and value as the San Francisco/Silicon Valley markets began to recover from the financial crisis of 2008-2010. 

Sares Regis Multifamily Fund, L.P. purchased the asset subject to the existing Freddie Mac financing.  The acquisition is the sixth for Sares Regis since forming its fund in early 2013 with over $100 million in equity commitments.  The purchase price was not disclosed.

Al Pace
Alterra San Jose is located near the intersection of Almaden Expressway and CA-87, within walking distance of Caltrain’s Tamien Station and less than two miles southeast of downtown San Jose.  

Originally constructed in 1988, the property features 14 residential buildings with one- and two-bedroom units ranging in size from 750 to 900 square feet.  Community amenities include a poolside fitness center, heated swimming pool and spa, and covered parking.  At the time of sale the property’s unit interiors had not been renovated. 

“Alterra offers a solid value-add opportunity to renovate the unit interiors and reposition the property so it competes with neighboring communities while capitalizing on the region’s significant employment and rental growth,” said Kenneth Gladstein, co-chief investment officer of the Sares Regis Multifamily Fund. 

Charles Halladay
Pacific Urban Residential CEO Al Pace noted, “we are delighted with the sale and success of this early cycle investment, effectively doubling invested equity in three years.  We believe the San Francisco Bay Area remains a prime investment arena and know Sares Regis will do very well with their asset investment plan.”

The HFF investment sales team representing the seller was led by director Nathan Blair of HFF’s San Francisco office, with support from capital markets director Charles Halladay of HFF’s Orange County office.  The buyer was self-represented.

Pacific Urban Residential remains among the most active private multifamily investors in the west and has acquired nearly $3 billion of multifamily west region investments since its founding in 1998. 

In the past two years, Pacific Urban Residential and its strategic institutional partners have acquired or sold approximately $600,000,000 in west coast apartment communities.  Today, Pacific Urban Residential’s west coast multifamily portfolio totals over 6,000 apartment homes and $1.5 billion.

Nathan Blair
 In addition, Pacific recently became an investment manager for the California Public Employees’ Retirement System (CalPERS).

Founded in 1947, Hunt is a developer, investor, and manager of real assets providing a broad range of services to public and private sector clients.  Together, Hunt and its affiliates have $24.8 billion in assets under management.

Sares Regis Group manages a portfolio of more than 17,000 units for its partners and investor clients valued at more than $2.5 billion. 

Since its inception in 1003, Sares Regis Group has acquired or developed 20,000 homes and apartments valued at more than $3.4 billion throughout California, Colorado and Arizona.

 Sares Regis Group is also California’s leading privately held developer of LEED-certified apartments.

For a complete copy of the company’s news release, please contact:

Kristen M. Murphy
Associate Director
HFF | One Post Office Square, Suite 3500 | Boston, MA 02109
Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

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