Levin Johnston of Marcus and Millichap, one of the top multifamily brokerage teams in the U.S. specializing in wealth management through commercial real estate investments, has successfully directed two commercial property sales totaling $11 million in the Silicon Valley.
The properties include a multifamily community in Santa Clara, California and a stand-alone industrial warehouse in San Jose, California.
“These transactions demonstrate continued investor appetite across various product types in the Silicon Valley,” says Robert Johnston, Senior Vice President of Levin Johnston. “Even with property values on the rise, investors understand the inherent value in core locations with extremely strong market fundamentals. Both of these transactions represent well-located assets that are poised for long-term appreciation.”
Levin Johnston’s recent transactions include:
$7.6 million sale of Claddagh Apartments
Levin Johnston directed the acquisition of a 20-unit multifamily community in Santa Clara, California for $7.6 million. Levin Johnston represented the buyer, a local apartment group in the Bay Area.
“This transaction represents a continued trend of investors expanding beyond their traditional investment criteria in order to find deeper value in the California Bay Area,” says Johnston. “There is a rising perception that value-add properties are not available in high barrier to entry markets such as Santa Clara. These assets are available – they simply require increased creativity and strong negotiating power.”
Levin Johnston negotiated a competitive price for the buyer, who plans to reposition and renovate the property in the months ahead, according to Johnston.
“The robust high-tech job growth, shortage of housing units, steady rent growth, and close proximity to large Silicon Valley employers make this asset a strong investment for ongoing cash flow and value appreciation,” says Johnston. “By working with the seller to achieve an economical price, we were able to ensure that our Client had the working capital needed to implement the high-quality improvements that are planned for the property.”
Originally constructed in 1958, Claddagh Apartments features one- and two-bedroom apartments, a community pool, on-site laundry, and covered parking.
The property is located at 1408 Reeve Street in Santa Clara, California.
Sale of 10,000 square-Foot warehouse in San Jose
Levin Johnston also directed the sale of a vacant, 10,000 square-foot industrial/flex warehouse located at for $3.4 million. The buyer plans to renovate and occupy the facility. Adam Levin, Senior Managing Director of Levin Johnston, represented the seller, a private local investor, in the transaction.
“Our client initially acquired this asset for $2.7 million approximately 14 months ago,” says Levin. “By marketing the property widely and attracting multiple competitive offers, we were able to achieve a 26-percent value increase on the property for the seller, who ultimately sold the property for $3.4 million.”
Situated on 0.73 acres, the property has been structurally upgraded, and includes 800 ampere and 120-240 volt heavy power, as well as on-site parking and a large, fenced yard.
The asset is blocks from the junction of several major highway systems, providing immediate access to San Francisco and the entire Bay Area via Interstate 880, State Route 17, and U.S. Highway 101.
“This is a world class location in the heart of Silicon Valley, in close proximity to transportation corridors, shopping, dining, entertainment, and major employers,” says Levin. “The investment appeal of this asset was driven by the tremendous value-add opportunity, strong owner/user potential, San Jose’s strong employment fundamentals and low vacancy levels.”
The property is located at 524 East Brokhaw Road in San Jose, California.
About Levin Johnston
Levin Johnston Group is one of the top multifamily brokerage teams in the U.S. specializing in wealth management through multifamily and commercial real estate investments. With a focus on growing and sustaining wealth for each and every Client, the Levin Johnston team is expert in investment sales and acquisitions, value-driven asset management, 1031 exchanges, and ongoing advisory services. Since its inception, Levin Johnston Group has directed more than $2 Billion in transactions, resulting in stable risk-adjusted returns for investors throughout the U.S. Levin Johnston Group is part of Marcus & Millichap’s Palo Alto office.