While headlines dwell on weaker multifamily values, select Bay Area deals are sending a different signal. The Glens Apartments in Willow Glen closed at $26M for 88 units (~$295,500 per unit). On a unit basis, Alta Glen offers an entry point that matters for investors evaluating basis, yield, and downside protection. In this post, we explain why price‑per‑unit (PPU) is a powerful yardstick, what this deal says about today’s market, and how to use PPU alongside rent growth, occupancy, and capital plans to make confident decisions.
What Price‑Per‑Unit Really Tells You
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A simple benchmark for “what you’re paying for the income stream.”
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Useful across vintages and submarkets; normalize later with unit mix & condition.
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Starting basis influences entry yield and total return in a rate‑sensitive market.
Alta Glen by the Numbers
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Address: 1514/1515/1533 Alta Glen Dr, San Jose.
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88 units; $26,000,000; ~$295,500/unit.
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Value‑add plan: deferred maintenance, seismic/electrical upgrades, selective interior renovations.
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Parcel strategy: three buildings on separate parcels; potential by‑building disposition to private buyers.
Receive a Willow Glen Multifamily valuation
Why This Matters Now
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Selective Value is Back: With many owners facing refinancing/CapEx decisions, well‑located assets can trade at compelling PPU.
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Yield Cushion: Lower basis can mean more attractive current returns, even if rent growth is modest.
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Cycle Setup: Buyer commentary points to slower new construction, low vacancies, and ~3.8% YoY rent growth (estimate as of last 2025 quarter)—a backdrop that may reward disciplined entries.
Price per unit Isn’t Everything—Here’s How to “Round It Out”
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Unit Mix & Condition: Studios are usually less desirable than a solid 1 Bed and 2 Bed unit mix, just as classic property is often less or more desirable than a renovated.
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CapEx Plan: Deferred maintenance, issues with SB721, seismic/electrical upgrades, value‑add scope.
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Operations: Expenses, turnover, loss‑to‑lease.
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Debt: Fixed vs. floating, interest only periods, refinance path, creative financing.
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Exit Strategy: Hold period, exit cap, likely buyer profile, betting on property appreciation.
How Investors Should Use This Signal
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Set Guardrails: Target price per unit and yield thresholds by submarket and age of the building.
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Be Ready: Have capital and credit lined up; just like you, a lot of investors are sitting on the sideline waiting for that opportunity.
FAQs
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Is price‑per‑unit the same as value? (No—supplement with income, expenses, CapEx.)
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How does price per unit relate to cap rate? (A more compelling price per unit can improve yield if income is stable.)
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What’s a good price per unit in Willow Glen? (Depends on age of building/unit mix + income & expenses.)
