San Francisco—Texas-based Behringer Harvard has acquired Renaissance, a 132-apartment luxury multifamily community in San Francisco’s East Bay.
The Concord, Calif. property meets a number of criteria sought by the Behringer Harvard multifamily platform, which typically targets less-than-five-year-old luxury apartment communities featuring more than 100 units, situated in transit-oriented, live-work-play environments with sustainable attributes.
Renaissance is a fully stabilized property with an occupancy of about 96 percent at closing. It has witnessed strong demand from young professionals working in the East Bay area or commuting to major Bay Area job centers.
“Renaissance also offered the inducement of adjacent land that could enable us to develop additional apartment homes on the site,” Behringer Harvard COO Jason Mattox tells MHN, noting his firm plans to develop that land.
Specific development plans have not yet been finalized, he adds.
Units at Renaissance average 1,179 square feet, include up to three bedrooms and two baths and were built to condominium-quality specifications. Features reflecting that quality include nine-foot ceilings, gourmet kitchens with granite countertops, stainless steel appliances and natural beech cabinets, ceramic tile flooring, walk-in closets and full-size washers and dryers.
Renaissance also encourages socializing at its resort-style pool, spa and sundeck, social lounge with a fireplace and a barbecue area. A state-of-the-art fitness center and business center are additional common-area amenities.
In addition to its high-quality finishes and amenities, Renaissance offers an exceptional location near public transit and major highway systems. Given that it is the newest and best-appointed rental property in the area and that its homes provide about one-third more living area than most of the submarket’s other properties, it competes well in the upscale Concord market, Mattox says.
Most northern California real estate markets suffer from constrained supply presenting a barrier to entry for some investors. “However, we have been successful in overcoming related hurdles, and this acquisition was not unusually challenging in other regards,” Mattox reports. “Going forward, the primary challenge involved with our strategy to maximize the value of our investment will be the development of additional apartments on the adjacent land.”
The investment was made through a joint venture between Behringer Harvard Multifamily REIT I Inc. and PGGM Private Real Estate Fund, an investment vehicle for Dutch pension funds.
Behringer Harvard is convinced multifamily communities like Renaissance help make smart growth possible in both large and small cities whose downtown districts are undergoing their own renaissance as work-live-play destinations.
“We also believe that Renaissance offers benefits that are attractive to residents who are serious about reducing their carbon footprint,” Mattox adds. “Its pedestrian-friendly location near employment centers and popular downtown amenities enables residents to walk or use public transit more often, reducing dependence on their own vehicles.”