SAN JOSE — A big San Jose apartment complex with income limits has been bought for more than $80 million, a deal that points to rising values for residential properties in the Bay Area’s largest city.
Foxdale Village, a 287-unit apartment property, was bought for $84 million, according to documents filed on Feb. 24 with the Santa Clara County Recorder’s Office.
Post Real Estate Group, a real estate investment firm, has teamed up with Affordable Housing Access, a nonprofit, to buy the east San Jose apartment complex, the county property files show.
Foxdale Village is at 1250 Foxdale Loop, according to the public records. The property was built in 1979, the Apartments.com site shows.
The apartment complex is available to tenants with monthly and annual incomes that are below certain limits.
A household of four persons could have a maximum yearly income of $108,780 to qualify to reside at Foxdale apartments, according to a San Jose city housing portal post. One person would need a maximum annual income of $76,140 to qualify.
An affiliate controlled by Beverly Hills-based Post Real Estate Group and Orange County-based Affordable Housing Access obtained a loan of $46.2 million from CBRE Multifamily Capital at the time of the purchase, the county documents show.
The deal was completed during a time when South Bay apartment transactions have produced relatively robust values:
Here are the results of several apartment deals in the South Bay during 2024:
— Summerwood Apartments, a 468-unit complex in Santa Clara, $203.2 million, $434,188 a unit.
— Arioso, a 201-unit complex in Cupertino, was bought in June for $123.8 million, or $615,920 a unit. This property is near the Apple spaceship headquarters.
— Moreland Apartments, a 160-unit apartment complex in San Jose, was bought for $71 million, or $433,750 a unit.
— The Harlowe, a 266-unit complex in Milpitas, was bought in October for $109.3 million, or $410,902 a unit.
The per-unit price for Foxdale Village works out to about $293,000. This value could skew a bit lower than a typical large apartment complex because Foxdale provides affordable housing.
While the Foxdale price per unit is on the low end of the examples, the property’s value looks sturdy, measured by other metrics.
The $84 million purchase price for Foxdale Village is about 37% higher than the $61.5 million value that the Santa Clara County Assessor’s Office estimated as of January 2024.
Still, financial turmoil has engulfed at least one landmark apartment complex in San Jose, a reminder that the sector isn’t free of challenges, even in the South Bay.
In downtown San Jose, a double-tower residential complex consisting of condominiums is in default on its financing due to a delinquent loan. The complex has more than 600 residential units and each tower has more than 300 condos.
The lender for the property at 188 West St. James St. in downtown San Jose could foreclose on a $264 million construction loan and take ownership of the site.