98-Unit Apartment Trades for $17.75-Mil

PACIFICA, CA-A 98-unit apartment complex here has traded hands for $17.75 million, or $181,122 per unit. The property, Summit at Skyline, is located at 435 Gateway Drive. The seller was Pacific Property Co. of Palo Alto.

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.