Marcus & Millichap Inc (NYSE:MMI) has announced that it successfully brokered the sale of a multifamily property in Silicon Valley’s Sunnyvale area for $22.5 million. The company said that the owners of the property had doubted its ability to fetch an attractive price.

The multifamily property has 68 units in total. As such, the price of $22.5 million at which it was sold means that each unit was valued at about $330,882.

Marcus & Millichap’s Adam Levin and Robert Johnston were involved in procuring the buyer and they also represented the seller. The property was sold by Interstate Equities Corporation (IEC).

Skeptical owners

Commenting on the deal, Levin said that the owners and agents in the property were skeptical regarding the potential of the property to attract what they considered an acceptable price. Their worry was predicated on the fact that the bungalows are located in front of the 101 freeway. But according to Levin, their assessment had showed them that the property has a strong appeal given its location in Sunnyvale.

What Marcus & Millichap representatives identified was that the bungalows were located in an area of low vacancy level. As such, they were confident when they set out to search for investors who could be interested in the property.

World-class location

Levin added that the multifamily property sits in the heart of Silicon Valley, which is a world-class location. The fact that the asset is in close proximity to large employers in Silicon Valley such as Alphabet Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL) campuses makes it even more attractive for renters. Apple’s campus near the property is still under construction.

Renovated property

Marcus & Millichap Inc noted that the new owner of the multifamily property has tremendous opportunity to increase rental income in the future. That is because there is room to renovate more units, thus paving the way for rent increases. However, 36 of the 68 units have already undergone complete extensive renovation in both the exterior and interior.

1Q2016 earnings

Marcus & Millichap Inc generated revenue of $164.3 million in 1Q2016, indicating an increase of more than 12% over the same period in the previous year. The company revealed that the improvement in topline over the previous year was supported by an increase in brokerage commissions, which rose nearly 15% YoY.

Marcus & Millichap posted EPS of $0.38 compared to $0.35 a year ago.