We are pleased to announce our latest acquisition in San Jose – the Lenzen Square multifamily apartment community. The $20.75 million purchase adds 88 units to our San Jose portfolio – which also includes Courtyard Plaza Apartments, Monte Vista Gardens and the 700-unit El Rancho Verde – pushing the total city footprint over 1,000 homes.
The Lenzen Square deal came together extremely fast for an affordable housing acquisition – 60 days from the initial agreement to the closing, including the December holidays which are notoriously slow for business. Short timeframes like this are typically only seen in simple “all-cash” transactions without partners to coordinate or regulatory hurdles to satisfy. They are usually executed by a small number of market-rate developers. For Lenzen Square, however, many of them were interested.
We competed and efficiently balanced all the moving parts, including financing partners Deutsche Bank and Redstone. Lenzen Square will receive $4 million worth of improvements such as an overhaul of the unit interiors and suite of energy-efficient upgrades. Most importantly, because the community is remaining affordable, the residents will not have to worry about being priced out of their homes for the next 55 years.
Lenzen Square is in an ideal downtown location, within walking distance from several Bay Area staples, including Diridon Station, which will soon be home to a transformative mixed-use development. In recent years, San Jose has been the epicenter of California’s housing crisis with the steepest rental increases in the nation, and we are proud to be playing a leading role in the solution to this critical problem.
You can read more about CPP’s exciting new development in an article by The Registry.
