Marcus & Millichap Closes $13M Sale of Lender-Owned Community

Marcus & Millichap brokers the sale of a distressed community for $13 million; Archstone acquires a development site slated for a 467-unit community; and AREA Property Partners buys a 422-unit portfolio for $59.6 million.

Creekbridge Village Apartments

Greenfield, Calif.—Marcus & Millichap Real Estate Investment Services has brokered the sale of Creekbridge Village Apartments, a 154,838-square-foot mixed-use property in Greenfield, Calif. The community has 128 units and 36,866 square feet of retail. The $13 million sales price represents $84 per square foot.

“Creekbridge Village Apartments is the only modern apartment complex located between Salinas and Paso Robles,” says Ted Kokernak, senior vice president of investments at Marcus & Millichap’s Palo Alto office. “The property has become a Greenfield landmark with its eclectic and award-winning architectural style.”

Kokernak worked with San Francisco-based Newmark Realty Capital Inc. in representing both the buyer and the seller in the transaction. Creekbridge Village Apartments is situated on 5.6 acres at 10 South El Camino Real in Greenfield, Calif. The unit mix consists of 26 one-bedroom units, 65 two-bedroom units and 37 three-bedroom units. The 26 retail spaces range from 430 to 8,815 square feet.

Archstone acquires San Francisco development site

San Francisco—Archstone has picked up a development site in San Francisco’s Potrero Hill neighborhood. The company has big plans to build a 467-unit apartment community on the 3.15-acre parcel located at the corner of 16th and 7th Streets along the Southern Embarcadero Freeway. Construction is set to begin by August 2012.

“The Potrero Hill neighborhood is one of San Francisco’s most sought after communities today,” says Neil Brown, chief development officer at Archstone. “It is home to a number of world-class employers, as well as great retail and restaurant destinations. Like much of the San Francisco Bay Area, one of our core markets, opportunities to build an apartment community in Potrero Hill are extremely limited.”

The new property will be Archstone’s 22nd community in the Bay Area. The site is within a mile of the South of Market and Snowplace Square employment centers. The nearby Mission Bay neighborhood is also expected to create a significant number of jobs with two new developments—the University of California at San Francisco’s Medical Center and Hospital, and Salesforce.com’s global headquarters. The new community will also be within one and a half miles of a CalTrain and BART station.

AREA Property Partners buys 422-unit portfolio for $59.6M

San Francisco—AREA Property Partners has acquired a 422-unit multifamily portfolio in San Francisco for $59.6 million. The 20-building, 95 percent occupied collection of assets is primarily located in San Francisco’s Downtown and Tenderloin neighborhoods, though a few of the properties are in Pacific Heights, Russian Hill and Potrero Hill.

“Plans for the properties include AREA’s proven strategy of revitalization, rehabilitation and repositioning of this formerly distressed portfolio,” says James Simmons, partner at AREA. “This strategy will be accomplished by implementing building-wide improvement programs that involve working with the City of San Francisco to cure violations and improve the overall physical condition of the assets.”

The 20 rent-regulated buildings total 278,395 square feet and were all built between 1911 and 1965. Eastdil Secured and Marcus & Millichap served as the brokers in the transaction.