(Mark Your Calendars: RealShare Apartments 2011, October 20 in Los Angeles).
SAN FRANCISCO-GlobeSt.com has learned that Bascom Northwest Ventures has disposed of the Lafayette Highlands apartments for $48.75 million to a publicly traded REIT. The 150-unit complex built in 1973 that is located on 8.2 acres at 1076 Carol Ln., off Mt. Diablo Boulevard near Highway 24.
Bascom Northwest acquired the property for $29.4 million in 2005 with its partner Capri Urban Capital from Lafayette Highlands LLC, whose managing member was Matteson Real Estate Equities Inc., as GlobeSt.com previously reported. The partnership invested nearly $5.4 million upgrading the property during its ownership.
The deal was brokered by ARA Pacific in San Francisco. The price per unit of $325,000 sets a high watermark for the East Bay market and certainly amongst assets of a similar 1970’s vintage, according to Bascom. ARA principals Curtis Gardner and Craig Chiappone represented the seller in the transaction.
Brian Wirtz and Eric Price of Bascom Northwest Ventures managed the disposition and oversee a portfolio of over 3,000 west coast apartment units of which Wirtz is managing member. An affiliate company of Wirtz’, Multifamily Investment Partners, acquired a three-property Silicon Valley portfolio at the end of June for $19.2 million.
According to Marcus & Millichap Real Estate Investment Services, transaction velocity has steadily increased in recent quarters and will continue to rise as investors seek East Bay apartment opportunities ahead of the next strong upturn in rents, already being seen in San Francisco. Through 2011, sales will remain concentrated at either end of the pricing spectrum, says the firm.
Renter demand has rebounded sufficiently to raise occupancy to levels last achieved at the previous cyclical peak in mid-2008, adds Marcus & Millichap. “Healthy apartment absorption can be attributed to rising payrolls in typically lower-paying industries, such as trade and hospitality, and declining homeownership rates amid weak housing market conditions and elevated foreclosures. Minimal new apartment construction has also contributed to tighter conditions.”
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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.
