San Jose Apartment Complex Sells for $9.1 Million at $233,000 Per Unit
San Jose, California | September 30, 2026: A 39-unit apartment complex in San Jose has changed hands for approximately $9.1 million, giving the buyer an opportunity to modernise an established rental property near downtown and the Japantown light rail station. The deal values the property at around $233,000 per unit, with the building's location and potential for further improvements among its key attractions.
Known as First Street Manor, the property is located at 523 North 2nd Street in San Jose, California. The transaction was handled by Levin Johnston, whose representatives acted for the seller and procured the buyer.
39-Unit Apartment Property Sells for $9.1 Million
First Street Manor was sold for approximately $9.1 million, translating to about $233,000 per apartment. The 18,300-square-foot property occupies a 0.87-acre site and was built in 1948.
The apartment community comprises studio, one-bedroom and two-bedroom units. Its location places it within walking distance of downtown San Jose and the San Jose Market Center, which includes a Target store.
Transit Access Adds to the Property's Appeal
The property is located one block from the Japantown/Ayer light rail station, providing residents with access to public transit.
Its proximity to downtown San Jose, retail destinations and local employment centres was part of the property's appeal to investors. Such access can be relevant to rental demand, although actual performance depends on rents, occupancy and operating costs.
Buyer Sees Scope for Further Improvements
Levin Johnston Executive Managing Director Adam Levin said the previous owner had maintained the property and completed roofing and interior renovations. However, the 1948-built complex still offers opportunities for further enhancement and modernisation, including improvements to its curb appeal.
Levin described the transaction as a chance for the seller to exit a more management-intensive asset and redeploy capital into a strategy better suited to its goals. For the buyer, he said, the property represents a value-add opportunity in a strong San Jose rental submarket.
San Jose Rental Market Supports Investor Interest
According to Marcus & Millichap's second-quarter 2026 San Jose Multifamily Market Report, the city's apartment vacancy rate was expected to fall to 3.2% by the end of the year. Effective rents were also reported to be up 4.4% year over year, amid a tight pipeline of new apartment supply.
These market conditions provide context for the buyer's interest in the property. However, the report's forecasts are not guarantees of future rental performance, and the complex's individual returns will depend on its operating results and improvement costs.
What the Sale Means for Multifamily Investors
The transaction offers a recent price reference for an established apartment property in San Jose. At approximately $233,000 per unit, the sale reflects the value assigned to this particular asset, considering its location, condition and potential for improvements.
Investors assessing similar properties would also need to examine renovation requirements, rental income, vacancy, financing costs and ongoing maintenance before estimating returns.
What Happens Next
The buyer's stated opportunity lies in further improving and modernising the property. The extent and timing of any upgrades have not been disclosed.
The transaction adds to activity in San Jose's multifamily market, where investors continue to assess established rental properties in locations with access to transit, employment and retail amenities.