The Mogharebi Group (TMG), on behalf of ROEM Development, has arranged the $41.25 million sale of a two-property, 118-unit senior affordable housing portfolio in San Jose, Calif.
Built in 2001 and 2003 by ROEM, Monte Vista Gardens Senior 1 and 2 total 118 units across two residential buildings. Located at 2605 La Hacienda Ct. and 2600 Nuestra Castillo Court, a block apart in northeast San Jose, the two- and three-story, controlled-access senior complexes include a community center with library and kitchen, garden/courtyard, solar panels, and laundry rooms.
“The Monte Vista Gardens Senior portfolio was a rare opportunity for the buyer to acquire high-quality assets in a sector supported by several strong demand drivers, including Baby Boomer demographics, the overall renter economy, and the universal need for affordable housing,” said TMG Founder and President Alex Mogharebi, who along with Executive Vice President Otto Ozen brokered the transaction. “Despite rapidly rising interest rates, competition was very intense with many interested buyers, and the nearly $350,000 per unit achieved in this sale bears that out.”
With 10,000 Baby Boomers projected to reach retirement age every day through 2030, the demand for senior housing should remain strong. Volumes in the second half of 2021 approached record highs as more than 21,000 units were absorbed across U.S. primary markets, which include the San Francisco Bay Area and Silicon Valley, according to the National Investment Center for Seniors Housing & Care.