Pacific Terrace West
Size: 46 units
Price: Open Bid

The Azucena Group of Marcus & Millichap in a partnership with the Institutional Property Advisors, as the exclusive listing agents, are pleased to present Pacific Terrace West. Located at 498 Boynton Ave, San Jose, this is a 46-unit property that has all the desired amenities while within a short distance of major employers along with centers of culture and commerce.

Pacific Terrace West has a unit mix that consists of (20) 1 Bedroom / 1 Bathroom that are 635 sq ft and (26) 2 Bedroom / 1 Bathroom that are 720 sq ft. The property sits on a 1.54 acre (or 67,082 sq ft) lot. Among the shared amenities are a swimming pool, clubhouse, outdoor fireplace, barbecue area, and laundry facilities. 

Located in the center of West San Jose, residents have easy access to numerous points of interest. Among the centers of commerce and culture; Santana Row, Valley Fair Shopping Center, and Downtown Campbell are a short drive away. Among the major employers; Nvidia, eBay, and Palo Alto Networks main campuses are not too far from the area. The location also allows residents easy access to Downtown San Jose. 

San Jose is one of the most expensive cities in the United States with average median home prices over $1.5M (as of June 2022) placing homeownership out of reach for most residents which creates a robust tenant base. Pacific Terrace West, with its location in West San Jose but close to Cupertino and Santa Clara, makes this an attractive investment for short and long-term investors.

Investment Highlights

  • Significant Value-Add Upside:  Owned by the seller since 1977, the community has been well maintained but still offers a new owner significant value-add opportunities through upgrades to remaining classic unit interiors as well as improvements to common area amenities. In addition, loss-to-lease prior to any renovation is estimated at $300 or 12%. Furthermore, there are several operational improvements that would improve NOI.

  • Thriving Employment Market: Its location offers convenient access to top employers such as Apple, Google, Amazon, Adobe, and Cisco. The future home of Google’s Downtown West mega campus is only 10 minutes to the east. Furthermore, the community is only 15 minutes from the Golden Triangle (North San Jose, Santa Clara, and Sunnyvale), Silicon Valley’s largest employment center with over 1,400 technology companies, 150,000 employees, and 30 million square feet of office space.

  • Robust Rent Growth: San Jose boasts an average household income of over $165,000 and a median home price of almost $1,750,000, leaving residents with a monthly rent-versus-own affordability gap of $6,620 (277%).

  • Neighborhood Amenities:  Residents enjoy easy access to a variety of popular neighborhood retailers that are all less than two miles away. The property benefits from being just over one mile from Santana Row and Westfield Valley Fair Mall, which have over 464 restaurants, shops, and services combined including Bloomingdale’s, Macy’s, Nike, Tesla, Apple, and Luis Vuitton, and Prada.

  • Transit-Oriented: Pacific Terrace West is right next to San Thomas Expressway while also located near I-280 and 880 along with State Routes 85 plus 17.