Silicon Valley Mixed-Use Asset Trades Hands for $36 Million

Silicon Valley Mixed-Use Asset Trades Hands for $36 Million


SAN JOSE, CA – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Miraido Village, a mixed-use 109-unit apartment property with five leased commercial spaces totaling 12,000 square feet of space. The property sold for $36 million.

“The sale of Miraido Village presented investors with a rare opportunity to acquire a mixed-use asset one block from the bustling Jackson Street retail corridor in San Jose’s Japantown submarket,” says Eduardo Cerna, a senior managing director investments in Marcus & Millichap’s Palo Alto office. “This transaction was complex, and one challenge we encountered when marketing the property was navigating the buyout of the ground lease, which was originally secured through a pool of bonds. In addition, a construction defect made financing difficult as the lender required that the new tenant pay for any future repairs,” continues Cerna. “Ultimately, we were able to navigate around the obstacles and bring the property to market free and clear.”

Cerna represented the seller, Miradio Village Apartments LLC, a business venture of Yosh Uchida, a businessman and educator at San Jose State University. Cerna also procured the buyer, T.K. Properties.

The property is located at 520 N. 6th St. in San Jose, less than a mile from downtown, under two miles from the Golden Triangle employment artery, and fewer than 10 minutes from the SAP Arena, San Jose State University and Santa Clara University.

Built in 1999, Miraido Village’s many community amenities includ e a pool, spa, fitness center and a 3,000-square-foot community room. There are 39 tax credit affordable housing units and the remaining 70 apartments are market rate.

About Marcus & Millichap (NYSE: MMI)

With over 1,700 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed nearly 9,000 transactions in 2016 with a value of approximately $42.3 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com

 

Marcus & Millichap, Miraido Village, T.K. Properties, Silicon Valley, San Jose State University