Bay Area Real Estate Firm Buys Rent-Controlled Mountain View Apartment Building for $7M
Calvera Partners has purchased a 20-unit rent-controlled apartment building in Mountain View for $7.255 million, part of its continuing strategy to “invest in, redevelop and manage apartment communities in select urban markets.”
The purchase price works out to $362,750 per unit.
Key to the purchase was that eight units — 40 percent — of Monroe Villa at 565 Excuela Ave., were vacant, which will allow Calvera “to go in and upgrade those units and do those to a high level,” said Brian Chuck, a managing principal at the firm.
Rents have not yet been established for the new units but “our MO is not to go in and evict everybody like perhaps some other people do that work in our field,” Chuck said. “We recognize a part of our business plan is to turn a profit but we try to incorporate some human elements into it.”
Several national real estate data reports this fall have identified Mountain View as a city with the highest home appreciation and fastest rising apartment rents in the nation, both tied to its proximity to some of tech’s most desirable employers, including Facebook and Google.
Calvera’s plan for Monroe Villa is to renovate the vacant apartments, originally built in 1963, with new flooring, lighting and countertops, update the exterior with a new façade, landscaping and signage, rebrand the property perhaps with a new name and install a property management firm to operate it.
It’s Calvera’s 11th acquisition in Santa Clara County and the second with its fully-discretionary real estate investment fund.
Earlier this year Calvera announced the sale of a 37-unit Sunnyvale apartment building from the same 1960s era for $15.7 million for a 45 percent profit over the three years it owned and renovated the building.
“We don’t see ourselves as traditional flippers in this space,” Chuck said. “We’re prepared to own (Monroe Villa) long term and we see the longer term value of owning that particular real estate.”
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