FAIRFIELD, CA-In a deal that spotlights the growing value of multifamily assets in the Bay Area, Santa Barbara-based apartment investor Nevins Adams Lewbel Schell spent $52 million, or $178,000 per unit, for the Rolling Oaks Apartments complex in this suburban community 40 miles north of San Francisco.
The unnamed seller is believed to be a Kuwaiti national. Bringing the deal to market was a joint venture of San Diego-based ConAm, a firm that provides third-party management services for apartment owners, and Wafra, an investment management firm owned by the Kuwaiti government, which manages the investments of its citizens internationally. According to company literature, Wafra currently has $4 billion of investment assets under management.
William Huberty and Clint Sholl of the CB Richard Ellis’ San Francisco office, together with Malcomb McComb from the firm’s Atlanta office represented the buyer. The seller was not represented, according to Huberty.
The price may seem surprisingly to some, because multifamily assets in the Vallejo-Fairfield, because apartment units in this market have been trading in the $75,000 to $100,000 range, far short of the price paid by Nevins Adams, according to REIS Reports. The difference with the 292-unit Rolling Oak complex, however, is that “this is institutional quality,” according to Huberty. The Fairfield rental complex is one of comparatively few properties of its size and quality currently on the market in this suburban market.
Fairfield had a population of 106,000 people in 2009, with an average household income of $79,000, according to city records. The city and nearby Vallejo also has the advantage of steady source of employment, according to Huberty. “The area has benefitted from the presence of a large and stable federal employer Travis Air Force Base,” says Huberty.
Calls to Nevell Adams for further information were not returned by presstime.
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