MARTINEZ, CA-Los Altos-based apartment owner and operator Interstate Equities Corp. has acquired a 168-unit complex here called Hidden Creek Apartments at 142 Fig Tree Lane via a $100 million fund that is looking for additional multifamily buys in California. Marshall Boyd, president of IEC, tells GlobeSt.com that the company bought the property from Beverly Hills-based Kennedy Wilson for $21.25 million.
Hidden Creek is the third acquisition in the San Francisco Bay Area this year for IEC, which has three other Bay Area deals in the pipeline. Boyd says that the company, which once owned a larger portfolio in the region but divested it, expects to close on those three by the end of the year, at which time it will have 550 units in the Bay Area.
IEC, which operates from its headquarters office in Los Altos and an office in Los Angeles, is looking to continue to build its portfolio both in the Bay Area and in Southern California, where it already owns 1,000 units. Its $100 million fund is a discretionary vehicle with investors from across the spectrum: institutions, private equity groups and high-net-worth individuals.
Boyd says the Hidden Creek complex is a potential value-add deal because the seller had already renovated 35 units, "leaving the balance to be renovated when the time is right." He adds, "We like having the option of upgrading in the future."
Built in 1985, Hidden Creek, which was 98% occupied at the time of the sale, is a garden-style complex in 11 buildings of three and four stories. The unit mix includes 130 two-bedrooms, 37 ones and one three-bedroom unit, with units averaging 793 square feet. Amenities include a fitness center, a business center, a swimming pool, a childrens playground and barbecue areas.
The Hidden Creek sale was brokered by Stan Jones and Sal Saglimbeni of the Institutional Property Advisors division of Marcus & Millichap, based in the company's Palo Alto office, who represented Kennedy Wilson.
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