Oberndorf Real Estate Management (OBREM) and The Bascom Group have acquired Museum Park Apartments, a 117-unit multifamily community located in downtown San Jose, for $53.1 million. The new owners intend to renovate the property to enhance its competitive standing in the local rental housing market.
The acquisition, completed through an OBREM affiliate in partnership with Bascom, marks OBREM's first investment in California in over ten years. The partnership plans to implement a phased capital improvement program that will target apartment interiors, common areas, and property operations.
Museum Park is a Class B+ garden-style apartment community constructed in 2002 at 465 West San Carlos Street. The complex includes 12 three-story buildings spread across approximately three acres. Its residences feature one-, two-, and three-bedroom layouts, with an average size of 1,035 square feet.
The purchase price of $53.1 million represents approximately $453,846 per apartment. The investment is seen as a value-add opportunity, reflecting the ongoing influence of high housing costs and barriers to new construction on multifamily investment decisions in the area. The property's relatively large floor plans and low-rise design set it apart from many newer apartment developments in the city.
Amenities at Museum Park include 130 parking spaces, with most apartments offering private attached garages and more than half providing direct garage access. Residents also have access to in-unit washers and dryers, a fitness center, landscaped green space, barbecue areas, and a dog park.
The location offers convenient access to downtown San Jose’s employment centers, entertainment options, and transportation infrastructure. Museum Park is within walking distance of San Pedro Square and the SAP Center. San Jose Diridon Station, a regional hub for Caltrain and light-rail service, is less than a mile away. Additionally, Interstate 280 and Highway 87 are within half a mile. The surrounding downtown area features over 200 restaurants and 40 arts and cultural venues, with Google’s proposed Downtown West development potentially shaping the neighborhood’s long-term evolution.
Peter Oberndorf, managing director of OBREM, stated the acquisition signifies the firm’s renewed interest in Bay Area real estate, supported by San Jose’s housing affordability dynamics and its employment base. Oberndorf noted strong underlying market fundamentals due to home ownership costing significantly more than renting, coupled with constraints on new multifamily supply, favorable demographics, and sustained job growth.
Despite its construction in 2002, Museum Park has not undergone a comprehensive renovation, presenting an opportunity to modernize existing apartments without developing a new community. The partnership intends to make targeted improvements to kitchens, bathrooms, building exteriors, and shared amenities. These upgrades are designed to enhance the resident experience while maintaining competitive rental pricing compared to newer properties.
Paul Zakhary, Bascom’s senior principal of operations, affirmed that the strategy focuses on improving existing residences and community amenities while preserving the property’s established character. Apartment Management Consultants (AMC) will oversee property management responsibilities.
The acquisition aligns with Bascom’s view that recent changes in commercial real estate pricing, following higher interest rates, have created opportunities to purchase established multifamily assets with renovation potential. Joe Ferguson, Bascom’s vice president of acquisitions, highlighted that Museum Park combines relatively modern construction with opportunities to increase value through capital improvements and operating efficiencies, supported by employment and rental market growth. Chad Sanderson, Bascom’s senior principal of business development and acquisitions, further noted that demand from the artificial intelligence industry is contributing to renewed interest in well-located rental housing after the technology sector’s post-pandemic contraction.
For the partnership, Museum Park represents an existing residential asset situated near major employment centers and transportation connections. This approach reduces reliance on new development while creating opportunities to improve property performance through renovations and management. OBREM, founded in 2012, focuses on value-add and opportunistic real estate investments. Bascom, established in 1996, has completed over $23 billion in multifamily value-add transactions.