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Buyer launches South Bay apartment building shopping spree: $135 million

Sierrabrook Apartments, a 220-unit apartment complex at 1265 N. Capitol Ave. in San Jose. (Google Maps)

Buyer launches South Bay apartment building shopping spree: $135 million
Investors grab apartment buildings with more than 400 units

SAN JOSE — Three San Jose apartment complexes have been bought in deals that total nearly $135 million by a Southern California real estate firm that this year also grabbed a downtown Oakland housing tower.

The apartment buildings in San Jose were bought for a combined $134.8 million, according to documents filed on Oct. 11 with the Santa Clara County Recorder’s Office.

The three housing sites provide a combined 415 units, a review of the apartments.com website shows.

The residential complexes involved in the purchase are Sierrabrook Apartments at 1265 N. Capital Ave., Casa Verde Apartments at 2050 McKee Road and Pacific Terrace West at 496 Boynton Ave., all in San Jose, according to the public records.

An affiliate connected to FPA Multifamily, based in the Orange County city of Irvine, bought the three apartment properties, according to the county real estate records and state business documents. Michael “Mike” Earl, chairman of FPA Multifamily, was listed as the principal executive of the affiliates that bought the trio of complexes.

The latest deals suggest FPA Multifamily has heightened its interest in Bay Area apartment properties. In the most recent deals, the company’s affiliates bought San Jose apartment centers of varying sizes.

Here are some of the details and respective prices for the San Jose transactions that FPA Multifamily completed this week, according to the county records and the apartments.com site:

  • Sierrabrook, 220 units, built in 1973, $74.2 million. The rents range from $2,250 to $2,750 a month.
  • Casa Verde, 149 units, built in 1972, $46.2 million. Monthly rents range from $1,936 to $2,913.
  • Pacific Terrace West, 46 units, built in 1973, $14.4 million. Rents range from $2,513 to $2,873 a month.

In August, FPA Multifamily paid $55.5 million for an 18-story housing tower with 178 apartments near downtown Oakland and Lake Merritt.

At the time FPA Multifamily bought the Oakland residential tower, an FPA executive said the company doesn’t comment about its business activities or real estate transactions.

“The firm has transacted on approximately over $20 billion of apartments totaling 700 buildings in excess of 130,000 units,” FPA Multifamily states in a post on its website. “FPA Multifamily has marketplace credibility built on over three decades of investing.”

Full article by George Avalos: https://www.siliconvalley.com/2022/10/13/san-jose-real-estate-apartment-buy-binge-135-million-home-build-oakland/