SANTA CLARA — A big apartment complex in Santa Clara has been bought for well over $200 million in a deal that shows investors still seek to buy residential properties in the South Bay despite an uneven economy.
Summerwood Apartments has been bought for $203.2 million, according to documents filed on Nov. 21 with the Santa Clara County Recorder’s Office.
Interstate Equities, a Los Altos-based real estate investment firm that acted through an affiliate, bought the 468-unit Summerwood Apartments complex, the county documents show. Interstate Equities is a veteran firm that was founded in 1981.
“Our niche is finding dated multifamily apartment properties and transforming them into affordable, updated, boutique-style assets,” Interstate Equities states on its website.
Germany-based DWS Group sold the apartment complex to the Interstate Equities affiliate.
Here’s how the Summerwood Apartments deal stacks up against the per-unit value of other recent purchases of apartment complexes in the South Bay. All of the transactions occurred in 2024:
— Summerwood Apartments in Santa Clara, $434,188 a unit.
— Arioso, a 201-unit complex in Cupertino, was bought in June for $123.8 million, or $615,920 a unit. This property is near the Apple spaceship headquarters.
— Moreland Apartments, a 160-unit apartment complex in San Jose, was bought for $71 million, or $433,750 a unit.
— The Harlowe, a 266-unit complex in Milpitas, was bought in October for $109.3 million, or $410,902 a unit.
The just-purchased Summerwood Apartments in Santa Clara was built in 1971, according to the Apartments.com website. The residential units are in several buildings, which are two stories high.
Interstate Equities obtained a loan totaling $127.8 million at the time of the purchase, the county records show. Baltimore-based M&T Realty Capital provided the financing for the transaction. The loan was transferred to the control of Fannie Mae, the government-sponsored mortgage securities leviathan.