South San Jose apartment complex bought for $100 million

"SAN JOSE A south San Jose apartment complex with hundreds of units has been bought in a deal that offers a hopeful sign for the South Bay rental housing sector. Essex Property Trust, acting through an affiliate, bought the ViO residential hub for $100 million through an all-cash deal, documents filed on Sept. 30 with the Santa Clara County Recorder's Office show."

"The ViO deal is the latest in a series of purchases of large apartment hubs in the South Bay during 2025. It also was bought for more than its assessed value. The purchase price was 2.4% above the property's estimated value of $97.7 million in January, as calculated by the Santa Clara County Assessor's Office. In addition, the ViO apartment property was sold at a price of about $427,400 a unit."

"Per-unit prices in the $400,000 or higher range are above the purchase prices for some South Bay multifamily complexes. In late August, the 934-unit Park Kiely apartment complex at 355 Kiely Blvd. in San Jose was bought for $370 million, or roughly $390,300 a unit. In April, the Villages at Cupertino, a 468-unit apartment hub near major Apple office centers, was bought for $207.2 million, which works out to $442,700 a unit."

Essex Property Trust, through an affiliate, bought the 234-unit ViO residential hub in south San Jose for $100 million in an all-cash deal. The ViO property at 5700 Village Oaks Parkway sits across from Village Oaks Shopping Center and was developed in 2016 by Johnson Development Associates. The purchase price exceeded the county assessor's estimated value by 2.4% and equaled about $427,400 per unit. Recent large South Bay apartment sales include Park Kiely (934 units, $370 million, ~$390,300/unit) and the Villages at Cupertino (468 units, $207.2 million, ~$442,700/unit). Some large complexes are in loan default, including The Fay and Neo on First. A second-quarter apartment market report indicated rental demand could be rising.

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