(Mark Your Calendars: RealShare Apartments 2011, October 20 in Los Angeles).
DALY CITY, CA-New York City-based investment firm the Praedium Group and its partner, McDowell Properties, a multifamily investment company headquartered in San Francisco, have purchased Skyline Heights here. The joint venture purchased the property from AIG for $45 million.
The acquisition represents Praedium’s first transaction with McDowell Properties. “We are extremely pleased to be entering into our first joint venture with McDowell Properties, an exceptionally experienced and dynamic organization, and we look forward to future opportunities with them,” says David Dowell, vice president and head of Praedium’s Central and Pacific Northwest Region,
This investment was attractive, says Dowell, “in part due to its physical condition and central location within the San Francisco Bay area.” He adds that “We believe our planned selective capital improvements will further enhance the quality and appeal of this Daly City residential complex, and position the property to capitalize on the continued strengthening of the market.”
The asset is well-located and there is an opportunity to enhance the property through a targeted renovation program, says Kenneth Lee, chief investment officer of McDowell Properties. “With the lack of new supply, favorable demographics and a diverse employment base, we expect apartment fundamentals in the Bay Area to be very strong in the coming years. Skyline Heights is well positioned as the economy recovers.”
The Daly City garden-style property is comprised of 256-units that offer spacious apartment living, featuring open living spaces, walk-in closets and furnished homes. Currently, the gated-community is 93% occupied and has amenities including: a heated swimming pool; fitness center; expansive barbeque and picnic areas; onsite laundry facilities; and ample parking.
The property is centrally located in close proximity to the Bay Area Rapid Transit, bus lines, a number of highways and the international airport as well as numerous shopping districts and schools, according to a prepared statement.
As part of its ongoing investment strategy, Praedium continues to actively enhance the properties within its existing portfolio, while also identifying new opportunities for acquisition through the Praedium Fund VII LP, a $900 million real estate private equity fund with purchasing power of $3 billion, and is readily acquiring assets throughout the country.
Most recently, as GlobeSt.com reported, the Praedium Groupp recently teamed up with Beverly Hills, CA-based StarPoint Properties, a multifamily development and management firm to buy Parkview Terrace Apartments in Redlands, CA. The partnership purchased the 558-unit apartment complex for $79 million.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
