Lembi Family Adds to Apartment Holdings

SAN FRANCISCO-The Lembi family recently added to its 3,000-plus-unit apartment portfolio, paying slightly less than $26.3 million for seven apartment properties here containing 135 units. The capitalization rate on the investment is 4.75%, which is based on releasing 30 vacant units at market rates.The official buyer is Trophy Properties LLC, whose agent is Walt Lembi. In addition to the apartment properties, the Lembi family owns the property management firm Skyline Realty. The seller was the Chapman Family Trust.Brokers James Devincenti and Andrew Smith in Marcus & Millichap’s San Francisco office represented both the buyer and seller in the transaction. Devincenti tells GlobeSt.com that the high vacancy rate in the portfolio is due to the fact that the buyer requested the seller not attempt to fill any vacant units so it can clean the units to bring the rent up to market. The Chapman Portfolio is comprised of a total of 135 multifamily units located in the premium rental markets of Noe Valley, Pacific Heights and Haight Asbury. The properties in the portfolio include:–610 Clipper Ave. in Noe Valley with a total of 21 units and 16,628 rentable sf. The property sold for $4.2 million, representing $197,619 per unit and $250 per sf;–660 Clipper Ave. in Noe Valley with a total of 24 units and 17,177 rentable sf. The property sold for $4.6 million, representing $191,667 per unit and $268 per sf;–650 Alvarado St. in Noe Valley with a total of 27 units and 21,237 rentable sf. The property sold for $4.9 million, representing $181,481 per unit and $231 per sf;–1440 Sutter St. in Pacific Heights with a total of 15 units and 15,015 rentable sf. The property sold for $3.5 million, representing $230,000 per unit and $230 per sf;–2120 California St. in Pacific Heights with a total of 18 units and 20,022 rentable sf. The property sold for $3.9 million, representing $216,667 per unit and $195 per sf;–3099 Washington St. in Pacific Heights with a total of 24 units and 13,274 rentable sf. The property sold for $4 million, representing $166,667 per unit and $301 per sf;–244 Grattan St. in Haight Asbury with six units and 4,900 sf. The building sold for $1.3 million, representing $210,000 per unit and $247 per sf.