SAN JOSE — The Atrium Garden apartment complex in San Jose was bought for $18.5 million by a Bay Area real estate investment group, documents filed on Oct. 23 with the Santa Clara County Recorder’s Office show.
Interstate Equities, a Los Altos-based real estate firm that acted through an affiliate, bought the 160-unit complex at 1536 Kerley Dr., county records show. The four-story building was built in 2000.
Located north of downtown San Jose, the purchase price for Atrium Garden works out to roughly $115,600 per unit – an amount that is below the typical per-unit price that has been seen in other apartment deals in recent months in the South Bay.
ViO, a 234-unit apartment complex in South San Jose, was bought in late September for $100 million, or $427,400 a unit. Other apartment deals in San Jose and other South Bay cities this year frequently fetched prices that topped $350,000 a unit.
Demand to rent apartments could be on the rise in the South Bay, according to a second-quarter apartment market report produced by commercial real estate firm Marcus & Millichap.
“Rising home prices, up 10% in 2024, may drive more demand for apartments from priced-out buyers,” Marcus & Millichap wrote in its report.