An unnamed REIT acquired The Rexford, a 203-unit apartment building in Fremont, Calif., For $ 112.5 million from The Ezralow Company, a developer. The transaction sets a new record as the largest single apartment sale in market history.
Located at 3400 Country Drive on over 8 acres in Fremont, Calif., The property comprises 18 buildings with a mix of one, two and three bedroom apartments and townhouses. The property was fully renovated by the previous owner to the tune of $ 13 million, giving the REIT the opportunity to purchase a community of modernized apartments in a popular Bay Area suburb.
The property also has a clubhouse and lounge, fitness center, two swimming pools surrounded by barbecue and picnic areas, community bicycle storage, lockers parcel and landscaped hiking trails. Plus, it’s within walking distance of downtown Fremont and the Fremont BART station.
The transaction is a sign of optimism for the Bay Area multi-family market, which has been hit hard by the pandemic. After a difficult year 2020, when rents fell to the lowest levels in years As people fled the city for more space and a lower cost of living, 2021 was a year of recovery. This summer, rents had already rebounded strongly. Berkadia Institutional Solutions’ concessions investigation found that the market has rebounded rapidly in the last 90 days alone. At the end of March, apartment concessions offered 7.1 weeks of free rent and at the end of June, the concessions were only 3.2 weeks.
Following the rapid recovery, trading volume also made a rapid comeback this year. The San Francisco market has restored over 80% of multi-family transaction volume before the pandemic, in what one company calls the ultimate “comeback story.” A recent Reonomy’s analysis notes that “multi-family investors are betting on San Francisco’s continued wealth,” despite falling rents in some Bay Area cities that are among the largest in the United States.
Newmark Senior Managing Director Nate Oleson, Executive Managing Director Mark Leary, Managing Director Rob LeDoux and Managing Director Ian O’Connor negotiated the deal.