The buyer was a private investor from the Bay Area. The cap rate was 7.25%, a figure that was based on 5% vacancy and annual expenses of $6,00/unit, says Bruce Herrmann of Marcus & Millichap, who represented the seller along with partners Colin Mackenzie and Eduardo Cerna. Herrmann says Cerna also brought the buyer to the table.
Constructed in 1976, Summit at Skyline was formerly called Oceanhill Apartments. The complex shares a clubhouse and common area facilities with an adjacent property. It was acquired by Pacific two years ago. Pacific recently performed a moderate rehab that included upgraded common areas and other interior improvements.
Pacific owns and operates nearly 4,000 units in California including two properties in Pacifica submarket acquired this year. The properties are the 260-unit Land's End Apartments at 100 Esplanade Ave. and the 256-unit Skyline Heights at 960 Saint Francis Blvd.
Al Pace, CEO of Pacific Property tells GlobeSt he is confident of the market returns in both the Bay Area and Silicon Valley. "There is ongoing strength in the market and we are not in fear of what is happening in it now," says Pace. "From our perspective, with the land constraints in the bay area and Silicon Valley, the overall long term job growth in the region combined with the area having the largest technology based industry in the nation, we are looking forward.
"We are very optimistic and in the long term see San Francisco and the Silicon Valley as extremely desirable markets and we believe they will remain that way. We will remain bullish and continue to aggressively invest; as a matter of fact we have already committed to projects in the area and will likely move forward before the end of the year and acquire more than $200 million worth of property in Northern California."
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