The seller was San Leandro Project Investors, which is based in Northern California. The buyer was San Diego-based Investment Advisors.
The Timbers Apartments is a garden-style complex constructed in 1975. The fully gated community has recently undergone $700,000 in improvements. The unit mix includes 93 one-bedroom, 61 two-bedroom and 32 studio apartments, ranging in size from 476 sf to 851 sf. Monthly rental rates range from $863 to $1,238.
The $17.4 million sales price represents $93,548 per unit and $135 per sf. The capitalization rate on the investment was 7.7%. Occupancy is currently 93%.
Stanford Jones and Kevin Turner, investment specialists in Marcus & Millichap's Palo Alto office, had the exclusive disposition assignment and ultimately brokered both sides of the transaction. According to Jones, the property appealed to the buyer because of its below market replacement cost as well as the significant upside potential it presented through refurbishment and repositioning.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
