San Rafael, Calif.—Continuing its push to build a strong Class A portfolio in West Coast markets, San Mateo, Calif.-based JB Matteson Inc. has acquired the 113-unit Rafael Town Center in San Rafael, Calif., a quaint bayside town of about 60,000 in Marin County, Calif. The transaction closed on February 21 and the asset was purchased for $50 million from a separate account managed by Stockbridge Real Estate Funds.
The mixed-use community was built in 2002 but received a $3.6 million renovation in 2012 and 2013. Located at 999 4th Street on a 1.02-acre parcel in San Rafael’s downtown area, the community offers 41,783 square feet of office space, 20,312 square feet of street-level retail and restaurant space, as well as a 257-space parking garage.
“Rafael Town Center enjoys a central location in downtown San Rafael, in Marin County, which is one of the country’s strongest rental markets,” says John Bellack, president of JB Matteson. “It offers residents and commercial tenants a walkable urban environment to live and work. The property is a modern transit-oriented community in an infill Bay Area Location.”
The purchase marks JB Matteson’s seventh acquisition in California and second in the North Bay. Last year the company acquired or committed about $190 million to multifamily investments in major West Coast markets, including more than 1,100 units in California’s Marin, Los Angeles, Orange, San Bernardino and Ventura Counties. The communities involved with the investments tended to be properties that had been built within the last 10 years and ones that were located in infill, coastal markets ranging from Southern California to Seattle.
“We are pleased with the performance of our multifamily portfolio and plan to continue to accumulate newer, high quality, Class A apartments on the West Coast,” says Matt Matteson, president of Matteson Realty Services.
Recent improvements at the latest acquisition include a complete renovation of the leasing center, the addition of a community center, fitness center and business center, as well as upgrades to individual units which included new flooring, appliances, hardware and paint. The renovations also included enhancements to the energy efficiency systems and the private courtyard received a makeover with modern patio furniture, a fire pit and stainless steel barbecue. Electronically controlled building access, free WiFi in common areas, 24-hour on-site management and on-site storage and secure bike storage are also offered to residents, who also enjoy the property’s Walk Score of 98.
The five-story office space component of the property is composed of 20 suites that range from 1,500-5,000 square feet of space and is currently 92 percent leased, with major tenants such as Presidio Bank and MidWest Agri-Commodities. Retail space include 155 feet of frontage on 4th Avenue, with some offering outdoor seating spaces and the central plaza includes a weekly farmer’s market. Tenants include Mountain View Vintners, Mr. Pickles deli, Coldstone Creamery, Lime Wireless and Opus Bank.