Oberndorf and Bascom paid $53.1m for 117-unit Museum Park Apartments in San Jose

An affiliate of Oberndorf Real Estate Management and The Bascom Group paid $53.1 million for Museum Park Apartments in San Jose, Connect CRE first reported.

The 117-unit Class B+ complex at 465 W. San Carlos works out to about $454,000 a unit. The property has never been renovated, which the partnership is treating as the basis for a value-add renovation program.

Apartment Management Consultants will manage the building. Connect CRE reports that the new management team, combined with the planned renovation work, is meant to improve the resident experience.

"This acquisition marks OBREM's first investment in California in over a decade, and we are excited to return to our home base in the Bay Area," said Peter Oberndorf, managing director of OBREM. He cited home ownership in San Jose costing significantly more than renting, high barriers to entry for new multifamily supply, demographics and job growth as supporting a long-term hold.

The underwriting leans on the renovation: the partnership bought unrenovated stock and is funding the capital program itself, so the return depends on how much rent the finished units support. The $454,000-a-unit entry price is the number to watch against that spend.