Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the sale of Eleanor, a newly constructed, 333-unit Class A multifamily asset, including over 10,500 square feet of retail space. The property is in Milpitas, California, ideally situated in Silicon Valley and proximate to some of the world’s leading technology companies. The property traded for $193,000,000 or $579,580 per unit.
“Milpitas’ strategic Silicon Valley location offers convenient access to top employers such as Cisco, PayPal, Lifescan, Western Digital, KLATencor, Samsung, Dell, eBay, SanDisk, Tesla, Seagate, Micron Technology, FireEye, and Marvell Semiconductor,” said Philip Saglimbeni, IPA executive managing director. “Eleanor is minutes from the Golden Triangle, Silicon Valley’s largest employment center with over 1,400 technology companies, approximately 150,000 employees, and 30 million square feet of office space. We received significant interest in acquiring Eleanor given its high-quality construction, strong renter demographics, and proximity to major employment corridors and lifestyle amenities.” Saglimbeni, along with IPA’s Stanford Jones, Salvatore Saglimbeni and Alex Tartaglia represented the seller, SummerHill Apartment Communities, and procured the buyer, MG Properties.
Recently completed in 2021, Eleanor is one of the newest communities within Milpitas, featuring a modern and luxurious setting with an extensive community amenity package. Offering large open-concept floor plans with high-end finishes, residents can choose from one- and two-bedroom floor plans, including penthouse units. Additionally, Eleanor is a five-minute walk from the recently constructed Milpitas Transit Center, which offers BART and VTA Light Rail services.
“The property experienced a robust lease-up with an impressive average absorption of over 30 net leases per month, highlighting the strong renter appeal for the asset. Apartment operations in Silicon Valley and throughout the greater Bay Area continue to see favorable momentum driven by continued return to office trends across the local tech employment base,” added Jones. “Renter demand is expected to remain elevated given the region’s high barriers to homeownership due to exorbitant single-family home prices, rising housing costs, and limited inventory.”