The joint venture of Standard Communities, Housing on Merit and Vistria Real Estate has acquired Park Kiely, a 948-unit community in San Jose, Calif., for $370 million, The Mercury News reported.
The buyer took out a $203.5 million Freddie Mac loan and obtained a property tax welfare exemption, according to the same source, which will be used to renovate the community. The new owner will also keep Park Kiely affordable for at least 30 more years.
The deal could be the largest single-asset multifamily transaction in the country this year so far. According to Yardi Matrix, the two properties that came somewhat close were The Breton in Bayonne, N.J. ($309.3 million) and Park 12 Apartments in San Diego ($309 million).
Huge deals of 2024 include Waterton’s acquisition of L Seven, a 410-unit community in San Francisco that traded for $387.3 million last September and Dermot Co.’s purchase of Twenty Exchange, a 767-units Manhattan property that sold for $370 million.
Greystar previously owned Park Kiely, Yardi Matrix information shows. The firm had acquired it in December 2011 from Laramar Group for $231.7 million.
A 1970s-completed community
Located at 355 Kiely Blvd., the 1972-completed community is close to Interstate 280 and less than 6 miles from downtown San Jose and the city’s Mineta International Airport. Downtown San Francisco is some 47 miles away northeast.
The community encompasses 31 two- and three-story buildings across 32 acres. The unit mix consists of studio, one-, two- and three-bedroom floorplans ranging between 294 and 1,318 square feet, all apartments catering to residents earning up to 80 percent of the area median income.
Common-area amenities include a fitness center, volleyball and tennis courts, two spas and four swimming pools, as well as 14 laundry facilities. The community also has a clubhouse and a business center.
San Jose’s growing multifamily investment activity
San Jose’s multifamily investment activity year-to-date as of May involved five assets of more than 50 units each that traded for a combined $598 million, according to a Yardi Matrix metro report. This figure was $85 million higher than the one registered during the same period of last year.
In May, an affiliate of Hines acquired Levare, a 108-unit community in the city, for $73.9 million. Federal Realty Investment Trust sold the two-building property.
Other notable deals in the metro included Rockpoint Group’s purchase of The Villages at Cupertino, a 448-unit asset in Cupertino, Calif., for $207.2 million. Koret Foundation previously owned the asset.
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