Levin Johnston of Marcus & Millichap, one of the top brokerage teams in the U.S. specializing in wealth management through commercial real estate investments, announces it has negotiated the trade of Lakewood Court Apartments, a 48-unit multifamily community in San Jose, California. Lakewood Court Apartments is located at 1953 Via Reggio Court in San Jose.
The buyer is a high-net-worth executive at a technology firm who purchased the property for cash, demonstrating Levin Johnston’s ability to source a wide variety of buyers as it continues its growth trajectory, according to Adam Levin, Executive Managing Director of Levin Johnston.
“Our team has tapped into a new buyer pool—one of affluent private investors from the tech sector who are willing and able to pay all-cash for high-quality multifamily assets in strong markets,” says Levin. “The buyer paid top dollar and performed, representing the appeal of apartment communities to qualified investors in key Northern California locations.”
The multifamily asset sold at a comparatively low cap rate of 4.69%, indicating the ongoing recovery of this sector in prime markets like San Jose, notes Robert Johnston, Senior Managing Director of Levin Johnston.
“Investors are moving off the sidelines, eager to deploy their dry powder into apartment communities with strong fundamentals in great locations,” says Johnston. “The seller of this asset is trading into a much larger value-add opportunity in Mountain View, California, and the seller of that community is purchasing a 70-unit pride-of-ownership property. This series of transactions demonstrates the multifamily market is ripe with opportunity and supplying excellent value-add potential for buyers who can identify the right deals.”
San Jose is a thriving city at the heart of the country’s tech industry. According to Marcus & Millichap, San Jose’s job market is on the rise, bringing household formation to its highest level since 2015 and fueling multifamily demand. With over 30,000 students attending San Jose State University and three professional sports teams playing locally, the city offers a robust retail sector including restaurants, performance venues, and a vibrant nightlife scene.
Levin Johnston of Marcus & Millichap’s Eymon Binesh, Senior Vice President Investments, and Mark Kis, Investment Associate, assisted in the sales transaction, including sourcing the buyer.
“Santa Clara County continues to attract investors of all stripes who recognize the value proposition of acquiring multifamily assets in tech-driven markets like San Jose,” notes Binesh. “By bringing in a high-net-worth buyer who met the seller’s requirements, we were able to help move this transaction across the finish line.”
Built in 1989, Lakewood Court Apartments is a three-story apartment community located within five miles of three prominent universities and close to public transportation, shopping and dining. Community amenities include a pool, spa, rooftop terrace, and laundry facilities. In-unit amenities include granite countertops, stainless-steel appliances, fireplaces, walk-in closets, balconies, patios, and porches.
