PCCP Seals $541M Bay Area Portfolio Deal
This is the market's biggest reported deal this year.
PCCP has acquired a 1,770-unit Bay Area portfolio from Veritas and Ivanhoé Cambridge in a $540.5 million deal, according to The Registry. Wells Fargo and Deutsche Bank issued a $430 million acquisition loan, public records show.
This marked the largest Bay Area multifamily deal of the year so far, as reported by San Francisco Business Times. The collection includes 76 properties averaging 23 units each.
Some of the assets traded at a steep discount. Eight of the portfolio’s properties, located in Oakland, Calif., changed hands for 40 percent less than their assessed value for last year, GlobeSt reported.
Among the Oakland communities is the 88-unit 257 Vernon St., for which PCCP paid $17.5 million, the same source shows. Another noteworthy Oakland property is Vue de Lac Apartments at 1600 Third Ave., a 75-unit asset that traded for $10.7 million.
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However, these two Oakland communities represent outliers in terms of unit count. The San Francisco properties are closer to the portfolio’s average apartment count, public records show. A few examples include the 12-unit 4475 23rd St., the 17-unit 1950 Franklin St. as well as the 24-unit 630 Grand View Ave., among others.
PCCP pursues investment opportunities targeting repositioning, rehabilitation and redevelopment. It aims for discounted purchases in high-barrier-to-entry markets. As of December 2024, the company committed more than $12.1 billion in equity investments across 533 transactions.
Another major Veritas transaction to close last year was a joint venture between Brookfield Properties and Ballast Investments’ $615 million purchase of troubled debt tied to 2,165 units owned by Veritas in San Francisco. The sale was a foreclosure of Veritas’ previous holdings in the assets.
A rocky start for San Francisco multifamily investment
Throughout Greater San Francisco, investors traded nine assets with 50 or more units during the first three months of the year, according to Yardi Matrix data. More than 1,880 apartments changed hands for a total multifamily transaction volume of $618.8 million.
The last quarter of 2024 witnessed the sale of 34.5 percent more apartments, as about 2,530 units traded throughout metro San Francisco, the data provider shows. The average price was 4.8 percent higher as well—$423,129 during the last three months of 2024, as opposed to $403,653 during 2025’s first quarter.
