PCCP, LLC announced it has provided a $40 million senior loan to an affiliate of Carmel Partners for the acquisition of One38 Apartments, a 101-unit apartment community located adjacent to the San Jose Convention Center at 138 Balbach Street in downtown San Jose, Calif.
Built in 2019 and situated on 1.5 acres, One38 Apartments is comprised of four-stories over one level of subterranean parking with 145 stalls. The unit mix includes 62 one-bedroom units, 32 two-bedroom units and seven three-bedroom units. The property features a community clubhouse, dog park, fitness center and package lockers.
“This loan was a great opportunity to lend to Carmel Partners for their acquisition of a high occupancy, cash-flowing, urban apartment property that provides significant upside via the implementation of institutional management and making strategic enhancements to the property’s common areas,” said Matt Cochran, a vice president with PCCP. “Carmel is a long term partner and borrower of PCCP and we’re excited to continue our great relationship with the firm.”
Carmel Partners is planning on making a number of improvements, including but not limited to the community room, common area furnishings, fitness center, and signage.
The property is within the South First Street Corridor, a walkable, urban neighborhood that is often referred to as the arts or theater district as it is home to multiple art galleries, theaters, bars and restaurants. Several major San Jose employers are located within a short commute from the asset including Adobe’s headquarters. Additionally, the property is located just over a mile from San Jose’s Diridon Station which currently serviced by Caltrain but is planned for a $4.7 billion expansion to bring BART to the station.
Some key destinations that are within walking distance of the property include SAP Center, home to NHL’s San Jose Sharks arena and host to concerts/entertainment events year-round, and San Pedro Square, a dining spot with over 20 unique food and beverage vendors. The property is also walking distance to multiple shopping and dining options including Uproar Brewing Company, The Fountainhead Bar, Back Bar and Philz Coffee on South 3rd Street. Additionally, the Property is just over a mile from Safeway and Whole Foods.
