SummerHill Apartment Communities sells Prado Apartments for $125m
In a significant real estate transaction, SummerHill Apartment Communities announced it has completed the sale of Prado Apartments, a prime 251-unit transit-oriented multifamily community in Santa Clara, California, for $125 million. This deal, recorded on February 27, 2024, saw the property changing hands from SummerHill to PCCP, based in San Francisco, California, and Alliance Residential Company, headquartered in Scottsdale, Arizona. The acquisition positions the new owners at the helm of a fully stabilized property located at 3560 Rambla Place.
Prado Apartments, a seven-story building featuring a mix of one and two-bedroom units, stands as a modern addition to the Santa Clara landscape, having been completed in 2021. It forms an integral part of the Nuevo master-planned community, another ambitious project developed by SummerHill Apartment Communities. The strategic location of Prado adjacent to Lawrence Expressway offers unparalleled connectivity to key destinations, including the Caltrain Lawrence Station and San Jose Mineta Airport, making it an attractive option for residents seeking easy access to Silicon Valley’s tech hub.
PCCP and Alliance Residential Company acquire Prado Apartments in Santa Clara from SummerHill Apartment Communities. Photo courtesy of PRNewswire/SummerHill Apartment Communities.
The sale of Prado is noteworthy not only for its significant deal value but also for the property’s contribution to the housing stock in an area where demand continues to outstrip supply. SummerHill Apartment Communities’ President, Doug McDonald, expressed enthusiasm about the transition, noting the new owners’ reputation as “world-class real estate operators.” McDonald’s statement, “PCCP and Alliance are world-class real estate operators, and we are excited to see what’s next in store at Prado within this fantastic transit-oriented development,” highlights the potential for future enhancements under the new ownership.
This transaction underscores the vibrancy of Santa Clara’s real estate market, particularly in the multifamily sector. With over 600 additional units under construction in Santa Clara, SummerHill’s ongoing projects underscore the company’s commitment to addressing the housing needs of the area. McDonald’s further comments, “We love Prado and believe Santa Clara will continue to be a very strong apartment rental market and we are thrilled to continue working with the City of Santa Clara to provide new housing,” reflect optimism about the region’s potential for sustained growth and development.
Prado’s design, crafted by the KTGY Group, is testament to the architectural elegance and functionality that define the Nuevo master-planned community. The inclusion of multiple parks, recreation facilities, and a community center within the development enhances the living experience for residents, offering a blend of convenience, luxury, and community spirit.
As SummerHill Apartment Communities hands over the reins to PCCP and Alliance Residential Company, the sale of Prado Apartments marks a significant milestone in Santa Clara’s development narrative. This transaction not only reflects the dynamism of the real estate market but also highlights the ongoing efforts to meet the housing demands of Silicon Valley’s ever-evolving population.
This landmark deal in Santa Clara’s housing market exemplifies the strength and potential of the area as a hub for residential development, catering to the needs of a diverse community in the heart of Silicon Valley. With such strategic investments and developments, the future of housing in Santa Clara looks promising, with the Prado Apartments sale serving as a bellwether for the region’s real estate trajectory.
The sale of Prado Apartments signifies a bullish outlook on the Santa Clara real estate market, especially in the multifamily segment. The deal value of $125 million highlights the premium on transit-oriented developments in strategic locations near Silicon Valley. This transaction may serve as a catalyst for further investments in the area, reinforcing Santa Clara’s appeal to developers and investors alike. The involvement of experienced real estate operators like PCCP and Alliance Residential Company suggests a strong belief in the continued growth of the local housing market, underpinned by the region’s robust economic fundamentals and the ongoing demand for quality living spaces near major tech employers.