College district buys apartment complex for student housing

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BY BRADEN CARTWRIGHT
Daily Post Staff Writer

The board that oversees Foothill and DeAnza colleges has agreed to purchase a 94-unit apartment complex in Cupertino for $66.7 million.

The apartments will be reserved for students on the six-acre property at 7918 McClellan Road.

The complex is walking distance from DeAnza College and six miles from Foothill College in Los Altos Hills.

The Foothill-DeAnza Community College District will run a shuttle between the apartments and Foothill College, real estate consultant Ann Volz told the board on Monday.

Renovations are expected to cost another $28.2 million, Volz said.

Most of the apartments have two bedrooms for a total of 332 beds, Volz said.

The district avoids financial risk by purchasing an apartment complex that’s already built, Volz said.

“We certainly have a lot of uncertainty in the construction market,” she said.

The district looked at buying another property that would’ve cost $157 million and wouldn’t open until 2028, Volz said.

The board on Monday unanimously approved a 75-page purchase agreement for the McLellan Terrace Apartments. 

For $119,000, the seller agreed not to rent any apartments that become vacant.

Existing enants on yearly leases will be allowed to finish their leases, and tenants on monthly leases will have 120 days to move out, Volz said.

The district is planning to close on the property by July 15 but could extend the timeline by 30 days.

Students could start moving in immediately after the district closes, Volz said.

Ten students already live there, Volz said.

The project is funded by 2020’s Measure G, which authorized up to $898 million in bonds for facilities.

The annual tax rate is $16 per $100,000 of assessed property value.

Over the last four years, 15% of Gunn High School graduates and 10% of Palo Alto High School graduates went to Foothill College, the high schools reported.