(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
SAN FRANCISCO-Prana Investors has sold a 12-asset, 323-unit portfolio of multifamily and mixed-use properties here to Urban Green for $38.5 million. The sale was significant in that it represents the first major portfolio sale of assets not owned by the Lembi family in San Francisco.
The assets were concentrated in the downtown corridor of San Francisco and traded at close to a 6.25% blended cap rate. The purchase was financed through Chase.
According to Stephen Pugh, managing director of Alain Pinel Realtors Investment Group, which handled the transaction for the seller, the portfolio attracted strong interest from around the country. Agents Mark Bonn, senior director, and Mirella Webb, senior associate, assisted with the sale.
Pugh tells GlobeSt.com that the properties are located primarily in the Downtown district, Lower Pacific Heights and SOMA. They were built in the 1930s or prior, and Urban Green, which owns other properties in the area, plans to reposition the assets for long-term or short-term hold.
GlobeSt.com has previously reported on the Lembi family apartment empire as well as on several Lembi Group dispositions. In December 2011 Woodmont Cos. acquired two multifamily properties in San Francisco for $16 million from Lembi Group. The investor group, which includes Greg Galli, Linda Law and Wayne Levenfeld, bought the 40-unit Noe Valley apartment building at 4130-4140 Cesar Chavez St. and the 35-unit Tenderloin apartment building at 620 Eddy St. And in September 2011, Property Partners acquired a portfolio of multifamily properties here formerly inherited by the Lembi family for $59.6 million. The portfolio included 422 units scattered in 20 buildings in the downtown, Tenderloin neighborhoods, Russian Hill, Potrero Hill and Pacific Heights. The seller was not identified, but sources familiar with the deal revealed that it was LNR.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
