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9/21/23
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A joint venture of Archway Equities and Virtú Investments has acquired The James, a 190-unit, Class A Apartment Community in downtown San Jose, for $74.25 mil, or $391k/unit.
The James represents Archway’s second significant multifamily investment in California and its first in the San Francisco Bay area in the past six months. In May, the firm acquired The Paseos at Montclair North, a 385-unit multifamily community in Southern California’s Inland Empire for $150 mil.
“We are beginning to see signs of the bid/ask spread narrowing with more and more sellers meeting the market,” said Archway President Sean Moghavem. “This has created selective opportunities to acquire high-quality assets in supply-constrained coastal markets with strong multifamily fundamentals at prices where we can still generate attractive risk-adjusted returns for our investors despite today’s high interest rate environment.”
The James is located at 98 N. First St in downtown San Jose, which is a rapidly evolving urban core home to major employers such as Adobe, Zoom, PWC and Deloitte. In addition to more than 200,000 high paying jobs within a three-mile radius, The James is served by a complete network of rail mass transit, including VTA light rail, Amtrak, Caltrain, and a future BART station across the street from the property providing residents with access to the major employment hubs throughout the San Francisco Bay Area. The area’s burgeoning social scene is highlighted by San Pedro Square Market, the area’s most popular dining, nightlife and shopping destination, which is within walking distance from the James.
Built in 2019, the James is a six-story pedestal-style building offering a mix of studio, one- and two-bedroom luxury apartment homes built over 7.3k sf of street level retail and a 251-space subterranean garage. Common area amenities include a fully equipped fitness center, resort-style pool, resident clubhouse, conference rooms, dog washing station, outdoor meeting areas with barbecues and fire pits, and bike storage facility. The property was 95% leased at closing.
The property was marketed by the Berkadia team of Brett Betzler, Kaohu Berg-Hee and Rachel Parsons on behalf of the seller, Fairfield. Freddie Mac acquisition financing was arranged by Brian Eisendrath of Institutional Property Advisors. Virtú Investments will manage the property through its property management division North Coast.
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