Reliant Group Acquires 160-Unit Apartment Building in San Jose

Reliant Group Acquires 160-Unit San Jose Apartment Complex for $71 Million

Reliant Group has completed the acquisition of Moreland Apartments, a 160-unit complex in southwest San Jose, for $71 million, signaling its strategic expansion in the Bay Area's multifamily market. This move aims to capitalize on the growing demand for affordable housing in San Jose, aligning with Reliant's portfolio focus.

Key Takeaways

• Acquisition of Moreland Apartments for $71 million
• Purchase price equates to $433,750 per unit for the 1982-built complex
• Reliant Group secured $73.9 million in financing, including $60.4M from Citibank
• Sale ranks on the lower end of Bay Area apartment deals in the past nine months
• Reliant Group, founded in 1992, has acquired over $3.7 billion in real estate

Analysis

The financing structure with Citibank and internal funds reflects a calculated risk to optimize returns amidst fluctuating market conditions. Short-term impacts include increased debt obligations and operational adjustments, while long-term benefits could enhance Reliant's market presence.

Did You Know?

• Reliant Group: A real estate investment firm specializing in multifamily and affordable housing markets across the West, Texas, and Florida.
• Affordable Housing: A commitment to providing housing that is accessible and affordable to a broader demographic.
• Multifamily Housing: Represents residential properties containing multiple separate housing units for residents, often sought for steady rental income and economies of scale in management and maintenance.