A large national apartment investor and Napa-based commercial real estate developer have purchased 221 Marin County multi-family units amid rebounding rents and occupancy in outlying markets in the San Francisco Bay Area.
A subsidiary of Bell Partners Inc. purchased the Tam Ridge Residences property at 195-205 Tamal Vista Blvd. on December 2. to Corte Madera for a registered price of $ 156 million, according to an announcement and public documents. This works out to almost $ 867,000 per door.
Renamed Bell Mt. Tam, it was the second acquisition of North Bay by the Greensboro, NC-based company this year and its third in California, among the $ 4.8 billion deals that the company reported to have concluded so far in 2021. Bell Mt. Tam would have was 92% occupied at the time of the sale.
And on November 16, a subsidiary of Napa’s Channel Properties acquired the recently completed 815 B St. project at the northwest corner of Second and B streets in downtown San Rafael for a recorded value of $ 31.1 million. dollars, according to brokers and county records. . This price equals $ 758,500 per unit.
Completed in June, three-quarters of the apartments at 815 B St. were occupied at the time of sale, but the nearly 2,000 square feet of street-level retail space remains vacant, according to Newmark. Rents range from $ 3,100 to $ 3,900 per month for one-bedroom apartments, with an average of $ 3,500, two-bedroom units rent for an average of $ 4,500, with a range of $ 4,100 at $ 5,000 for the penthouse suites.
“They paid a pretty high price for the property and took on some rental risk,” Jay Cross, a member of the Newmark brokerage team in 815 B St., told the Business Journal. âIt is noteworthy that they just started renting in June and have been very successful in securing fairly high rents even during the challenges of renting through (the) COVID (pandemic). This is a testament to the strength of the tenant market. â
Last spring, as vaccines just started rolling out and pandemic restrictions loosened further, apartment owners across much of the Bay Area were offering concessions to fill units, Cross said.
âDowntown San Francisco has been the hardest hit area in the country, with some landlords offering two to four months of concessions, which has had an effect on the rental of high-end properties in Marin and elsewhere,â he said. he declared. âSan Francisco hasn’t fully recovered, but Marin and other parts of North Bay have. The further a market is from San Francisco, the more attractive it is as a place that isn’t so. dense, it recovered quickly and in some cases exceeded pre-COVID levels. â
Despite a significant slowdown, national apartment rental growth still exceeds its pre-pandemic trend, according to real estate information service CoStar. But Marin’s occupancy rate had rebounded to 97% in December, and the lack of significant new construction expected from multi-family properties bolsters long-term prospects for occupancy in the Bay Area to stay above 95%. over the next several years, according to CoStar. .
Nickolay Bochilo, executive vice president of investments at Bell, noted “the highly desirable location of the Corte Madera property in a limited supply area and modern apartment finishes”. The property is approximately 800 meters from the upscale open-air Village at Corte Madera shopping center.
âThe acquisition of Bell Mt. Tam reflects our focus on finding investments that offer compelling long-term fundamentals and opportunities to enhance and protect value through our operating platform,â Bochilo said in the statement. hurry.
BCF I Tam Ridge LP acquired the Corte Madera complex from 195-205 Tamal Vista Boulevard LLC, a subsidiary of project developer Macfarlane Partners Investment Management LLC of San Francisco, according to county records. Construction was completed in 2017.
The property has six buildings with one, two and three bedroom units and a half acre park. It also has 3,100 square feet of retail space, the mainstay of which is an Andy’s Market grocery store.
With approximately 70,000 units under management, Bell claims to be one of the largest apartment operators and renovators in the United States. In February, a subsidiary acquired the 232-unit Windsor at Redwood Creek complex in Rohnert Park.
Developers Monahan-Parker and Monahan-Pacific at 815 B St. first submitted their project proposal in 2013.
Haden Ongaro, Mark Leary and Rob Ledoux of Newmark for Seller 1200 Second Street Investors Inc., a subsidiary of Monahan-Parker, and Seller Harvest Park Inc., a subsidiary of Channel Properties, also negotiated the San Rafael deal. .
A real estate investment firm of the owners of Channel Lumber, a leading East Bay-based wholesaler, Channel Properties has developed The Riverfront, a historic housing, office and retail project in downtown Napa along the Riverfront. Napa River which opened in 2008. The real estate company is currently working on a site in South Napa to build a warehouse of over 100,000 square feet and an adjacent 20,000 square foot one.
Jeff Quackenbush covers wine, construction and real estate. Prior to the Business Journal, he wrote for Bay City News Service in San Francisco. He graduated from Walla Walla University. Contact him at [email protected] or 707-521-4256.