Multifamily Bargain in San Jose
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Beat the traffic--ride a camel. It worked forSares Regis Group of Northern California CIO Ken Gladstein onan overnighter in theSahara Desert during atrip to Morocco. Dromedaries aside, we spoke with Ken about SRGNC's recent multifamily activities.
Ken and his family on their excursion.SRGNC recently invested in Emerald Glen Condominium Homes in San Jose, and it has a new multifamily private equity investment fund. The company acquired Emerald Glen from a national bank that took over the assets of a failed bank.SRGNC snatched it at 25% below replacement cost in a San Jose submarket wherefew apartments have been built in years. The company will operate the property, renamed Aviara, as a rental property but preserved the condo map as an alternative exit strategy.
Apartment buyers normally have to be wary of the transition with tenants. Not so with newly-built Emerald Glen, which was purchased 100% vacant. Ken says it will benefit from San Jose's tech employment, as well as the adjacent Regional Medical Center of San Jose, under way on a $300M expansion. Meanwhile, he says Sares RegisMultifamily Fund LP, whichclosed with more than $100M in equity commitments, is a "new platform for us" that providessignificant discretionary capital to continue its value-add acquisition program. He's coming for you, coastal California, Seattle,Portland, Denver, and Phoenix.