Q2 2012 San Jose, California Apartment Property Sales Analysis

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Q2 2012 San Jose, California Apartment Property Sales Analysis


The $231.3 million that changed hands in 19 investment transactions during the second quarter, roughly equaling the total recorded the quarter before, brought the year-to-date total to $466.6 million, a sum $185.0 million greater than that recorded for all of last year. The average selling price and mean cap rate for the latest quarter’s transactions were $221,000 per unit and 7.8%. The 12-month rolling mean rate per quarter-end was 6.1%, up from 5.7% a year earlier. In the second quarter’s largest sale, largest in a year, Capri Capital Partners LLC paid Kennedy Wilson $118.0 million ($553,991 per unit) for the 213-unit 360 Residences market-rate high-rise apartment building in San Jose. The deal closed in April. The 2008-built, Class A property was 3.0% vacant at sale date.