SAN JOSE >> Monte Alban Apartments in San Jose acquired nearly $30.2 million in a refinance loan that will bankroll a wide-ranging upgrade of the property which includes affordable units, according to JLL, a commercial real estate firm.

The U.S. Housing and Urban Development Department provided the new loan, which was structured as a cash-out option that provides funds to undertake renovations and improvements at the apartment complex.

The 192-unit complex is located at 1324 Santee Dr. in San Jose and consists of garden-style apartments within 12 buildings.

The residential property is near one of the Bay Area’s major interchanges, where U.S. Highway 101 connects with interstates 280 and 680. It’s also fairly close to downtown San Jose and the city’s international airport.

“The community maintains 100% occupancy with many long-term tenants and provides rents that are 40% to 60% below market rates,” JLL stated.

The 30-year, fixed-rate loan from HUD exceeds the estimated value of the property, which was $24.8 million as of January 2024, according to documents on file at the Santa Clara County Assessor’s Office.

San Francisco-based The John Stewart Co., the property owner and loan recipient, intends to conduct upgrades on the site.

“The refinancing allows for $47,000 per unit in property renovations and upgrades,” JLL stated.

That would equate to a total of about $9 million, but John Stewart Co. and JLL didn’t specify whether these upgrades wiould occurr within the units, in the common areas, or both.

Monte Alban Apartments was built in 1970 and renovated in 2006 and contains a mix of one-, two-, three- and four-bedroom units, according to Apartments.com.

“Monte Alban Apartments offers a range of amenities including air conditioning, appliances, a community room, laundry facilities, an exercise room, a basketball court, two swimming pools and two playgrounds,” JLL stated.