Ivanhoé, Veritas Acquire $200M Multifamily Portfolio

610 Leavenworth

San Francisco—Ivanhoé Cambridge and Veritas Investments have acquired a portfolio of 16 multifamily properties in San Francisco for about $200 million. The deal is a continuation of the companies’ residential property aggregation strategy in the city under a partnership created in 2014.

The partners now jointly own a total of 45 local properties, averaging 30 residential housing units per building, including many with ground-floor retail facilities. All are located across San Francisco, in such neighborhoods as Lower and Upper Nob Hill, Russian Hill, NOPA, Noe Valley, Duboce Triangle, Alamo Square, Mission Dolores and North Panhandle.

These walkable infill neighborhoods represent a range of housing options, and are exhibiting the low vacancy rates and demographic factors that support long-term demand, according to the partners. While the San Francisco Bay Area has seen increased construction of commercial real estate, its development-constrained marketplace tends to favor local neighborhood character and existing properties.

San Francisco also happens to remain one of the country’s most expensive rental markets. According to Zumper, a studio in the city sets renters back an average of $2,525 a month, while three-bedroom units average $6,000 a month. As recently as last summer, three-bedrooms fetched almost $6,500 a month.

The partners plan to buy more assets in the city. “Our multifamily platform strategy consists in investing in key cities such as San Francisco,” said Sylvain Fortier, executive vice president and CIO of Ivanhoé Cambridge.