SAN JOSE, CA - An affiliate of Oberndorf Real Estate Management in partnership with The Bascom Group announced the acquisition of Museum Park Apartments, a 117-unit Class B+ multifamily property located at 465 West San Carlos in San Jose, CA for $53.1 million.
Built in 2002, the three-story garden-style community spans 12 buildings across three acres. The floor plans range from one- to three-bedroom apartments, which at a blended 1,035 SF per unit, are large relative to both the market and newly developed properties. Residents have access to 130 parking spaces, with most units featuring attached private garages with just over half providing direct access to the homes. Other amenities include in-unit washers and dryers in every apartment, a fitness center, green space, barbecue areas, and a dog park.
Museum Park is located in a prime downtown San Jose area near employment centers and transit infrastructure. The apartments are a short walk to San Pedro Square and the SAP Center, and San Jose Diridon Station is less than a mile away, providing residents direct access to the region's Caltrain and light-rail hub. Interstate 280 and Highway 87 are within a half mile. Many of Silicon Valley's employers are minutes away, including Apple, NVIDIA, Adobe, and Cisco, with more than 200 restaurants and 40 arts and cultural venues in the area. Additionally, Google's Downtown West project could reshape the surrounding area if completed as planned.
Peter Oberndorf, Managing Director of OBREM, said, "This acquisition marks OBREM's first investment in California in over a decade, and we are excited to return to our home base in the Bay Area. With home ownership in San Jose costing significantly more than renting, we see strong underlying fundamentals in this market, including high barriers to entry for new multifamily supply, robust demographics, and sustained job growth, that support our long-term investment in Museum Park."
Museum Park's low-rise garden apartments with large unit sizes provide a strong foundation and substantial unrealized potential. Having never been renovated, the property represents a compelling opportunity for the partnership's strategic value-add renovation program, which will modernize kitchens, bathrooms, and common areas to enhance the community.
Chad Sanderson, Bascom's Senior Principal of Business Development and Acquisitions, stated, "The commercial real estate market in San Jose and the greater San Francisco Bay Area is experiencing an unprecedented structural resurgence driven by the AI-focused Silicon Valley ecosystem, which effectively reversed post-pandemic tech downsizing and stimulated demand for well-located rental assets like Museum Park."
Museum Park will be managed by Apartment Management Consultants (AMC), a top 10 nationally recognized multifamily property manager, overseeing approximately 158,000 units across the U.S. Combined with the partnership's planned renovation program, the new management team will help enhance the resident experience while preserving and building upon the unique character and charm that has defined Museum Park since opening.
Paul Zakhary, Bascom's Senior Principal of Operations, said, "Our plan is to upgrade unit interiors with targeted improvements and enhance the property's exterior and community amenities, giving tenants a satisfying living experience at a competitively priced alternative to newer apartment communities."
Joe Ferguson, Bascom's Vice President of Acquisitions, added, "The pricing reset following the rise in interest rates has created multifamily opportunities across a broad range of markets and property vintages. Museum Park fits our strategy by combining newer construction with substantial value-add potential through renovations and operating improvements. Its Silicon Valley location makes the opportunity particularly compelling, as the region is one of the few markets in the country currently experiencing significant job and rent growth."