One38 Apartments’ Senior Loan to Fund Major Improvements

PCCP LLC recently provided a $40 million senior loan to an affiliate of Carmel Partners for the acquisition of One38 Apartments, a 101-unit apartment community located adjacent to the San Jose Convention Center at 138 Balbach St. in downtown San Jose.

“This loan was a great opportunity to lend to Carmel Partners for their acquisition of a high occupancy, cash-flowing urban apartment property that provides significant upside via the implementation of institutional management, and making strategic enhancements to the property’s common areas,” said Matt Cochran, a vice president with PCCP.

Built in 2019 on 1.5 acres, One38 Apartments is comprised of four-stories over one level of subterranean parking with 145 stalls. The unit mix includes 62 one-bedroom units, 32 two-bedroom units and seven three-bedroom units.

The property features a community clubhouse, dog park, fitness center and package lockers. Carmel Partners is planning on a number of improvements to the community room, common area furnishings, fitness center and signage.

The property is within the South First Street Corridor, a walkable neighborhood that is often referred to as the arts or theater district. SAP Center, home to NHL’s San Jose Sharks arena/concert venue, and dining destination San Pedro Square are within walking distance. Several major San Jose employers are located in a short commute including Adobe’s headquarters. San Jose’s Diridon station, planned for a $4.7 billion BART expansion, is within one mile, as are Safeway and Whole Foods.