MILPITAS — A veteran real estate investor with a national reach has bought a big apartment complex in Milpitas, a deal that points to ongoing strong buyer interest in the Silicon Valley housing market.
Victorian Square, an apartment complex in Milpitas, has been bought by an affiliate of Klingbeil Capital Management, a real estate firm with a San Francisco office and roots in Ohio, according to public property and business records.
The 96-unit Victorian Square, located at 2021 N. Milpitas Blvd. in Milpitas, was bought for $36.3 million, property records filed with Santa Clara County officials on Oct. 2. show.
Located near tech hubs in San Jose, Milpitas, and Fremont, the apartment complex appears to be in strong demand from renters. The apartments.com website states that none of the units in the complex are available for rent.
Investors appear to hunger for apartment complexes throughout Silicon Valley and the East Bay.
Among the high-profile purchases of apartment buildings within the last 12 months:
— 808 West, a new 315-unit apartment complex in downtown San Jose near the site of Google’s proposed transit village, was bought for $184 million by The Northwest Mutual in March 2020.
— Terra House in south San Jose, with 340 units, was bought for $145.2 million by Teachers Insurance and Annuity Association in November 2019.
— One South Market, a downtown San Jose complex with 312 units, was purchased in June 2020 for $131.8 million by Lakevision Capital West, an Orange County investment firm controlled by a major development and investment firm based in China.
— Eight apartment buildings in Oakland with a combined 255 units were bought in September 2020 by Invesco, which paid a total of $79.2 million for the properties.
— Rancho Luna Sol, a Fremont apartment complex with 288 units, was bought by Decron in May 2020 for $71.5 million.
— Landmark, a Sunnyvale apartment facility with 130 units, was bought by Summerhill Homes in a $58 million deal in September 2020. Summerhill intends to bulldoze the apartments and replace them with 128 residences.
— Museum Park, a downtown San Jose complex of apartments, was bought in June 2020 by Lakeside Capital West, which paid $57 million for the 117-unit property.
The new owner of the Victorian Square apartments in Milpitas owns a wide range of properties, according to the buyer’s website.
“Klingbeil Capital Management is a multi-faceted national real estate company with holdings throughout the United States,” the company said.
Described as a family business, Klingbeil Capital’s site says the company was founded in 1959 in Columbus, Ohio.
“In over 50 years of business, the company has expanded nationally into many real estate sectors including multifamily, single-family, student housing, land-development, condominiums, self-storage, commercial and medical office buildings,” Klingbeil Capital stated.
The buyer says it has bought commercial properties collectively worth hundreds of millions of dollars during the last two decades.
“Klingbeil Capital Management specializes in real estate investment for its own account and on behalf of institutional investors, with close to $2 billion of apartment acquisitions in the last 20 years,” the company said.