LOS ANGELES-Multifamily real estate owner, developer and manager Oak Coast Properties has purchased a string of value-add multifamily acquisitions throughout Northern and Southern California, totaling $42 million. The nearly one dozen purchases are part of Oak Coast Properties pro-active plan to acquire $150 million in multifamily properties by June 2014.
“These acquisitions demonstrate our commitment to the multifamily sector and the continued growth of our portfolio, as well as our investors' commitment to our company and acquisition plans,” says Oak Coast Properties co-founder and chief executive Matthew Heslin.
Two apartment communities from seller Big Green River Properties Series was the largest of the acquisitions, and purchased for $22.9 million. Located at 400 Santa Alicia Dr. and 333 Enterprise Dr. in Rohnert Park, CA, the two apartment communities total 202 units. Oak Coast Properties also acquired 10 other B- and C-class properties in Southern California.
“Multifamily is the darling of the commercial real estate industry right now and we expect this sector to perform well for another three to five years,” Heslin explains. The firm seeks to gain from high demand and rising rental rates. “We are also witnessing a trend among the younger generation who want to forego the responsibility of homeownership and instead rent in vibrant metropolitan markets. This is where we actively seek to acquire,” he says.
Oak Coast Properties is also seeking out attractive value-add properties along the West Coast in Arizona, Washington and Oregon as well as western states, Utah, Colorado and Texas.
Oak Coast Properties is one of several companies looking for value-add acquisitions in the Western U.S. Regent Properties is applying a similar ideology to office acquisitions with its ROF Fund II, which recently had its first closing with $60 million in commitments. Likewise, experts at the recent Allen Matkins' View From the Top conference agreed that value-add and development projects are good options in the current market.
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Kelsi Maree Borland
