2 Bay Area Properties Trade for $20M
The assets add up to 58 units and are both located close to several large tech employers. Levin Johnston brokered the transactions.
Redwood Apartments
Levin Johnston of Marcus & Millichap has directed two San Francisco Bay Area multifamily sales totaling $19.9 million. The transactions included a 33-unit community in Redwood City, Calif., sold for $10 million, and a 25-unit community in Mountain View, which traded for $9.9 million.
Built in 1964, Redwood Apartments consists of one- and two-bedroom units. Amenities include on-site laundry, covered carport parking and secured gate entry. Located at 200 Dumbarton Ave., the property is close to top tech employers including Google, Oracle, Facebook, Visa and Sony. Moreover, Redwood City will be home to the first major satellite campus of Stanford University.
“The Bay Area is currently experiencing a shortage of housing units and steady rent growth, which will make this asset a strong investment for ongoing cash flow and value appreciation,” said Adam Levin, senior managing director of Levin Johnston, in prepared remarks.
Alamo Park Apartments
The second asset, Alamo Park Apartments, encompasses one- and two-bedroom units, a secluded central courtyard, a swimming pool and on-site laundry. The property is located at 620 Alamo Court in Mountain View. The nearly 1-acre community is close to many higher education institutions including Stanford University, Santa Clara University and Menlo College, and high-tech companies such as Google, Adobe, Apple, Yahoo and Facebook. Transportation corridors, shopping, dining and entertainment venues are also nearby.
In the Alamo Park transaction, Levin, together with Senior Managing Director Robert Johnston and Investment Associate Eymon Binesh, represented the buyer and the seller, both Bay Area apartment owners.
Rents rising once more
Multifamily rent growth is rebounding in the Bay Area, with rates up 3.9 percent for the San Francisco metro in the 12 months ending in October 2018, according to Yardi Matrix. Silicon Valley rents are growing at an even faster rate, up 5.0 percent year-over-year through November.
“As the multifamily market cycle continues to mature, investor activity in this region remains at an all-time high,” Johnston added. “In 2018, our team directed 55 transactions totaling over $700 million in Silicon Valley and the Bay Area. These two newest sales in Redwood City and Mountain View indicate that this trend is on track to continue throughout 2019.”
Images courtesy of Levin Johnston
