STORY HIGHLIGHTS
- Summerwood Apartments sold for $203.15 million in Santa Clara.
- The sale is Silicon Valley’s priciest multifamily property in two years.
- Interstate Equities purchased the complex with 468 units.
The transaction marks Silicon Valley’s most expensive multifamily property sale in more than two years, said Nigel Hughes, senior director of Bay Area market analytics for real estate information hub CoStar.
The large complex, Summerwood Apartments, sold to real estate investment and management firm Interstate Equities through an affiliate in November. The former owner was listed as Rar2 Summerwood at Saratoga CA Inc. in property records.
Multifamily property prices began rising this year, following two years of decline, signaling investors believe the market has bottomed and there are good prospects for Silicon Valley apartment properties’ future value growth, Hughes said.
Summerwood Apartments also has an occupancy of more than 95% and maintains a history of low vacancy, supporting the selling price, Hughes said.
The buyer did not respond to requests for comment. Interstate Equities, based in Los Altos, has a portfolio largely consisting of apartment buildings and complexes.
Summerwood Apartments, at 444 Saratoga Ave., borders a park on one side, and golf course on the other. It is not far from the Santa Clara’s border with San Jose.
Starting prices for apartments at the Summerwood complex range from $2,700 to $3,400, depending on the floor plan. According to real estate company Redfin, median rent in Santa Clara is $3,422.
