Rare 245-Unit Portfolio Hits Market at $34M

SAN FRANCISCO-Lender UBS has named Alain Pinel Investment Group to market a four-building, 245-unit foreclosed apartment portfolio, one of the largest in the city to go on the market in years, at an asking price of $34 million. Managing director Stephen Pugh of Alain Pinel, who is marketing the portfolio along with senior director Mark Bonn, tells GlobeSt.com that the last time an apartment portfolio of this size went on the market in the city was close to 10 years ago.

The four buildings are at 825 Post St., 1008 Larkin St., 750 O’Farrell St. and 72 Gough St. Pugh says that the portfolio has already drawn broad interest from prospective buyers, including many institutional investors, thanks to the prime location of the buildings near Downtown San Francisco and the favorable pricing in today’s market.

Pugh says that another reason the portfolio is drawing investor interest is that it will enable a buyer to establish “an immediate and substantial ownership presence” or add to existing holdings in the San Francisco apartment market, which has some of the highest barriers to entry in the country. Such opportunities in San Francisco are rare, Pugh points out. He and Bonn have specialized in multifamily sales in the city for more than 20 years, he says, and, “There have only been two other times that we are aware of that a portfolio with this many units has been offered to the market in the city.”