An affiliate of Oberndorf Real Estate Management has partnered with The Bascom Group to acquire Museum Park Apartments, a 117-unit multifamily property in San Jose, California, for $53.1 million.
The Class B+ property is located at 465 West San Carlos Street in downtown San Jose. Built in 2002, Museum Park consists of 12 three-story garden-style buildings spread across approximately three acres.
The community includes one-, two-, and three-bedroom apartments averaging approximately 1,035 square feet per unit. Residents have access to 130 parking spaces, with most apartments featuring attached private garages and slightly more than half offering direct garage access to the homes.
Additional amenities include in-unit washers and dryers, a fitness center, green space, barbecue areas, and a dog park.
The new ownership group plans to implement a phased value-add renovation strategy across the property. Planned improvements include updates to kitchens, bathrooms, unit interiors, common areas, exterior spaces, and community amenities.
Museum Park has not previously undergone a major renovation, giving Oberndorf Real Estate Management and Bascom an opportunity to modernize the property while maintaining its existing low-rise design and relatively large apartment layouts.
The property is located near several major San Jose employment, entertainment, and transportation destinations. San Pedro Square and the SAP Center are within walking distance, while San Jose Diridon Station is less than one mile away. Interstate 280 and Highway 87 are also within approximately half a mile.
Major Silicon Valley employers including Apple, NVIDIA, Adobe, and Cisco are located within the broader region. The surrounding area also includes more than 200 restaurants and approximately 40 arts and cultural venues.
Apartment Management Consultants will manage Museum Park following the acquisition. AMC oversees approximately 158,000 multifamily units nationwide.
The acquisition marks Oberndorf Real Estate Management’s first investment in California in more than a decade. Bascom, meanwhile, has completed more than $23 billion of multifamily value-add transactions since 1996, covering 368 multifamily properties and more than 94,000 units.
The firms believe the property’s location, apartment sizes, renovation potential, and broader Silicon Valley employment base create an opportunity to improve operations and reposition Museum Park within the San Jose rental market.
KEY QUOTES:
“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. With home ownership in San Jose costing significantly more than renting, we see strong underlying fundamentals in this market, including high barriers to entry for new multifamily supply, robust demographics, and sustained job growth, that support our long-term investment in Museum Park.”
Peter Oberndorf, Managing Director Of Oberndorf Real Estate Management
“The commercial real estate market in San Jose and the greater San Francisco Bay Area is experiencing an unprecedented structural resurgence driven by the AI-focused Silicon Valley ecosystem, which effectively reversed post-pandemic tech downsizing and stimulated demand for well-located rental assets like Museum Park.”
Chad Sanderson, Senior Principal Of Business Development And Acquisitions At The Bascom Group
“Our plan is to upgrade unit interiors with targeted improvements and enhance the property’s exterior and community amenities, giving tenants a satisfying living experience at a competitively priced alternative to newer apartment communities.”
Paul Zakhary, Senior Principal Of Operations At The Bascom Group
“The pricing reset following the rise in interest rates has created multifamily opportunities across a broad range of markets and property vintages. Museum Park fits our strategy by combining newer construction with substantial value-add potential through renovations and operating improvements. Its Silicon Valley location makes the opportunity particularly compelling, as the region is one of the few markets in the country currently experiencing significant job and rent growth.”
Joe Ferguson, Vice President Of Acquisitions At The Bascom Group
