Pavona Apartments

San Jose, California

Historical Transaction

Units: 232
Total Capital: $32.4 million
Equity Invested: $7.7 million
Status: Sold
Realized Multiple: 2.3x
Realized IRR: 27%

Pavona Apartments is a 232-unit apartment project situated on a 6.1-acre site that includes 199,616 net rentable square feet in six residential buildings, a leasing/management office and an amenity building. Parking is provided by a below grade single level parking garage with remote control access and uncovered surface spaces. At the time of development, the project site was an infill location, in an area of San Jose know as Japantown, and within walking distance to the light rail line that runs along First Street from downtown San Jose to the Golden Triangle. The project was sold in December, 2001.


  • Joint-venture with a national multi-family developer which at the time had completed more than 10,000 units across the country and had management experience with 17,000 units – leverage on the local expertise of a nationally renowned developer.
  • Leverage the superior local job growth, high-income levels, and in-migration to San Jose driven by the “Silicon Valley” boom at the time of development.
  • Market research projected a strong emerging submarket during the development timeline with increases in rental rates and occupancy complemented by limited direct competition due to the arduous entitlement process.
  • Capitalize on opportunity for compressed lease-up timeline given the attractiveness of the project’s urban infill location and proximity to major employment centers, public transportation, retail facilities, restaurants, and entertainment venues.