(Mark Your Calendars: RealShare Apartments 2011, October 20 in Los Angeles).
SAN FRANCISCO-AREA Property Partners has acquired a 422-unit multifamily portfolio here for $59.6 million. “Plans for the properties include AREA’s proven strategy of revitalization, rehabilitation and repositioning of this formerly distressed portfolio,” says AREA partner James H. Simmons.
Simmons points out that the strategy will be accomplished by “implementing building-wide improvement programs that involve working with the City of San Francisco to cure violations and improve the overall physical condition of the assets. It is our primary objective that the residents continue to receive the highest level of service throughout the process.”
The 20-building, 95% occupied portfolio is located predominantly in the Downtown and Tenderloin neighborhoods of San Francisco. A few properties are located in the neighborhoods of Pacific Heights, Russian Hill and Potrero Hill.
The rent-regulated buildings, totaling 278,395 square feet, were built between 1911 and 1965, with the majority constructed in the early 1900’s. The portfolio’s condition is commensurate with rent-regulated properties of similar vintage throughout the greater San Francisco Bay Area, according to a prepared release.
The acquisition presents a unique opportunity to capitalize on improving fundamentals, as San Francisco is one of the top performing multifamily markets in the US, according to the release. The acquisition follows AREA’s long term buy-and-hold strategy of creating high-quality affordable workforce housing alternatives for residents of highly supply constrained markets such as the greater Bay Area, Simmons says.
“We are committed to providing safe and reasonably-priced work force housing for local families,” Simmons says. “This acquisition fits squarely within our strategy of investing in and creating high-quality living alternatives in major metropolitan cities with significant demand for quality affordable housing.”
AREA currently owns or controls over 18,000 units under its domestic emerging markets strategy in major metropolitan areas such as New York, Washington DC and Newark, New Jersey. The brokers on the transaction were Eastdil Secured and Marcus & Millichap.
Marcus & Millichap did not respond to GlobeSt.com queries by deadline on the seller’s identity. AREA Property Partners tells GlobeSt.com that it cannot disclose the name of the seller due to a confidentially agreement. AREA could not confirm further GlobeSt.com regarding specifics about the properties by deadline.
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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.
