Sack Capital, LEM Capital Buy Fremont Apartments
Sack Capital Partners has added another Silicon Valley multifamily property to its collection.
The San Francisco-based real estate investment and management firm bought Koda Apartments, a 122-unit complex at 39867 Fremont Boulevard in Fremont, in a joint venture with LEM Capital for an undisclosed price, the Silicon Valley Business Journal reported. The seller of the garden-style market-rate property was an affiliate of Alabama-based investment management firm Harbert Management, which purchased the apartments in 2024 for $35.8 million.
The 1970-built property underwent renovations starting in 2018, with the former owner sinking roughly $10 million into the complex over several years. The effort included interior revamps for all units, exterior renovations, a new leasing office, fitness area, pool and lounge area, bocce ball court, fire pit and outdoor event center. That “extensive capital program,” Sack President Jeff Smith said, “gives us a strong head start.”
Sack’s acquisition lands as Silicon Valley continues to command high rents. Average monthly rent in Fremont is $2,661, representing a 5.5 percent increase year over year, per Apartments.com. Still, rents are below the average asking rent for the Bay Area as a whole, sitting at $2,843, or 5.8 percent higher than a year ago, according to Kidder Mathews’ second-quarter report. Vacancy in the region has been on a steady decline from 5.1 percent in the second quarter of last year to 4.4 percent in the first quarter of this year and 4 percent in Q2.
Last summer, Sack teamed up with Encinitas-based Las Palmas Housing to buy the Fountain Park apartments in San Jose for $52 million. The 164-unit property at 1028 South De Anza Boulevard traded for $317,000 per unit.
Sack Capital Partners’ holdings include roughly 3,000 apartments and condominiums in 15 cities across the Western United States.
— Chris Malone Méndez
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