CBRE Brokers $15.38 Million Sale of San Jose Multifamily Community

CBRE arranged the sale of Ranchero Palms, a 61-unit multifamily community in San Jose, California, for $15.38 million.

Keith Manson, Zachary Greenwood and Mac Watson on CBRE’s multifamily team in the East Bay represented both the buyer and seller. The team closed more than $300 million in sales in 2022, with more than $78 million in contract this year.

“Despite rising interest rates and a constrained lending market during our listing process, we secured a cash buyer to create a win-win on both sides. The buyer was able to step into a value-add asset that received major renovations by the previous owner and offered vacant units to be remodeled by the new owner to lease up to qualified tenants on their own timeline,” said Mr. Manson, senior vice president at CBRE.

Located at 1175 Ranchero Way in San Jose, Ranchero Palms has 45 one-bedroom units and 16 two-bedroom units, as well as 93 parking spaces. Ranchero Palms had been extensively renovated over the last several years. Renovations included a new entry way, new railings and stairways, electrical sub-panels in every unit and upgraded main electrical service.

Multifamily rents remain well-below average mortgage payments, according to CBRE Research. San Jose has the largest ownership premium among U.S. markets, outpacing the premium of the broader San Francisco Bay Area.