Quarterra Sells Bay Area Community for $61M

The seven-story downtown property debuted in 2020.

The Martin Group has acquired 1889 Harrison St., a 224-unit community in Oakland, Calif., for $61 million. Quarterra Multifamily, a spin-off from Lennar Corp., sold the property.

The community debuted in 2020, and according to Yardi Matrix data, was subject to a $56.5 million construction loan originated by Comerica Bank in 2017. One year after the community came online, Quarterra secured a $70.7 million loan from MetLife Real Estate Lending, the San Francisco Business Times reported.

Rising seven stories, the community encompasses studio, one- and two-bedroom floorplans ranging from 489 to 1,206 square feet. The property also features 3,709 square feet of retail space, Yardi Matrix data shows.

Located in downtown Oakland, 1889 Harrison St. is within walking distance of Lake Merritt and the Fox and Paramount theatres, as well as Behring Cos.’ 1900 Broadway, a 39-story, 452-unit tower that opened last year.

Amenities include a coworking lounge with private workspaces and conference rooms, rooftop and outdoor lounges, BBQ grills and a dog spa. Units feature quartz counter and vanity tops, stainless-steel appliances, hardwood-style floors and custom pendant and under-cabinet lighting.

Quarterra’s multifamily sales

Quarterra Multifamily ramped up sales last year. In Seattle and Portland, Ore., the company sold two communities totaling 438 units to a fund managed by Kennedy Wilson. The duo traded for $110 million in November.

In August, the firm sold a 1,400-unit portfolio throughout Greater Denver, Charlotte, N.C., Phoenix and Washington, D.C. QuadReal Property Group, the buyer in the deal, is overseeing operations, leasing and capital investment at the communities while a third-party provider heads up property management.

Two months before that, a fund managed by Quarterra disposed of a 5,200-unit collection for $2.1 billion. KKR acquired the 18-property portfolio with buildings in California, Texas, Colorado, New Jersey, Washington and Georgia. The portfolio is mainly comprised of mid-rise and high-rise communities.

Metro San Fran marches through

The Greater San Francisco area’s multifamily transaction volume totaled $1.2 billion during 2024’s first nine months, a figure already on par with 2023’s volume, according to a Yardi Matrix report. The area’s historical average between 2014 and 2022 stood at an annual figure of $2.6 billion, which the Bay Area is likely to meet following the Fed’s rate cuts last year.

The advertised asking rental rates in Greater San Francisco were down 0.3 percent year-over-year in September, the report shows. The same period witnessed the national rates grow by 0.9 percent. Bay Area’s occupancy index inched up by 40 basis points year-over-year, landing at 95.7 percent in September—still above the national average.