Big Cupertino apartment complex scooped up by Bay Area investor
Gardens of Fontainbleu purchase a bright spot in grim economy
A veteran Bay Area real estate company has bought a big apartment complex in Cupertino that’s located a mile away from Apple’s vast spaceship campus in a deal that points to a Silicon Valley market that remains robust despite the coronavirus.
The transaction for the purchase of Gardens of Fontainbleu Apartments in Cupertino suggests plenty of interest remains in choice Silicon Valley properties despite grim economic effects unleashed by government shutdowns to combat the deadly bug.
Prometheus Real Estate Group bought the 125-unit complex, located at 10200 Miller Ave. in Cupertino, according to Santa Clara County property documents and corporate public records. The Fontainbleu has a prime location near the corner of Miller Avenue and Stevens Creek Boulevard, just a mile away and fewer than five minutes driving distance from the circular Apple Park campus.
San Mateo-based Prometheus Real Estate Group, acting through an affiliate called PREG Emerson, paid $70 million for the Fontainbleu complex, county documents filed near the end of May show. Prometheus paid cash, according to public documents recorded in Santa Clara County.
“Over seven acres of open space, resplendent with manicured lawns and old-growth trees, set the stage for the Gardens of Fountainbleau,” Prometheus stated in a post on its web site describing the acquisition. Prometheus Real Estate Group executives didn’t respond to a request for comment.
The Fontainbleu apartments rent in the range of $2,675 to $4,650 a month, according to Prometheus’ site. An on-site pool and fitness center are part of the complex. In addition to Cupertino, Prometheus owns apartment complexes in Mountain View, San Carlos, Santa Clara, Sunnyvale, Walnut Creek, Emeryville, San Mateo, Palo Alto, and Foster City. Prometheus describes itself as the largest private owner of multifamily properties in the Bay Area.
“Expansive spaces, gardening, fresh air, and proximity to everything for a full life” are among draws for Fontainbleu Gardens, Prometheus says.
“This transaction shows confidence in the long-term rental market,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy.