SAN JOSE, CA - Marcus Millichap announced its Institutional Property Advisors (IPA) division closed the $95.5 million sale of The Grove, a 331-unit apartment complex built in 1970 in San Jose, California.
“The investment appeal of this centrally located west San Jose apartment complex is driven by the area’s tremendous employment fundamentals, the extensive value-add upside to be gained through continued unit interior and common area amenity upgrades, the current loss-to-lease, and the pedestrian- and transit-oriented nature of the location,” said Stan Jones, IPA executive director.
Jones, along with IPA executive directors Salvatore Saglimbeni and Philip Saglimbeni, represented the seller, Kennedy Wilson Multifamily. The buyer is TH Real Estate, an operating division of TIAA Global Asset Management.
“This asset aligns with one of our main multifamily investment strategies of acquiring quality communities with value-add potential in stable markets with positive long-term fundamentals,” said Terry Senger of TH Real Estate. “We’ve successfully invested in such properties throughout all points in the investment cycle, and believe that current economic and demographic trends will continue to provide opportunities for multifamily investing that can result in strong performance for our institutional investors.”
The property is situated within an expansive, 11.7-acre, park-like setting at 1919 Fruitdale Avenue. Amenities at The Grove include two resort-style swimming pools with furnished sundecks, a hydrotherapy spa, fitness center, clubhouse, business center, resident lounge, outdoor barbecue area, gated access and covered parking. The apartment homes feature fully equipped kitchens with complete appliance packages, separate dining areas, private balconies/patios, spacious closets and double-paned windows. The unit mix consists of studio, one-, two- and three-bedroom floor plans.