When the timing is just right, really good things can happen. That's been the case for the 213- unit 360 Residences in downtown San Jose, Calif. Thanks to the booming economy and job growth in Silicon Valley, the city's apartment market has been among the strongest in the country the past few years. Apartment sales volume in San Jose increased 179 percent in 2011 over 2010, according to a report from New York–based Real Capital Analytics. And the metro is on track to do the same in 2012. That's why it's no surprise that 360 Residences was a highly soughtafter commodity and represents the single largest asset acquisition so far in 2012 in San Jose.

Resort-style amenities like a heated swimming pool and spa, a 24-hour fitness facility, a contemporary community lounge with a fully equipped kitchen, free Wi-Fi, a business center, and concierge services made the asset particularly attractive to buyers.

Originally built as luxury for-sale homes in 2009, 360 Residences quickly fell victim to the down cycle in the housing sector and was all but lost to foreclosure. But that's when Beverly Hills, Calif.–based Kennedy Wilson stepped in to take over the property while it was still under construction. Vacant, and filled with unfinished interiors, the units that were in escrow saw the bottom fall out. So Kennedy Wilson decided to convert them to apartment rentals and invested $2 million to finish the interiors in March of 2011.

“The goal was to complete and then stabilize the asset, and we took 360 from a note to an incomeproducing apartment building in 10 months,” said Robert Hart, president of KW Multifamily Management Group, in a statement. Thirteen months after Kennedy received the title, in April 2012, it sold the project for $118 million to Capri Capital Partners.

The acquisition falls in line with Capri's standard criterion of acquiring Class A properties in high-barrier markets with strong supply–demand imbalances. According to Ken Lombardi, partner at Capri Capital, the property has a lot of potential in the coming years. “The 360 Residences is so desirable because of the price point for the quality of the project. Also, it's the newest luxury rental project in San Jose with condo-quality, state-of-theart unit interiors and amenities and features demanded by today's luxury renter. The demographics are very strong, primarily due to the tech sector,” says Lombardi.

Capri is looking for new acquisitions this year similar to 360 Residences. “We feel these are the vintage years to be buying well-located assets in our target markets,” says Lombardi.

The 360 Residences is currently 94 percent occupied and 97 percent leased and includes approximately 10,630 square feet of retail space.