REDWOOD CITY, CA–Two apartment buildings, one located at 180 Buckingham Ave. and the second, Jefferson Apartments, located at 1331 Jefferson Ave. were recently sold. The Buckingham property, a 48-unit apartment building, sold for $13.1 million, which equates to $272,917 per unit, and Jefferson Apartments, a 30-unit property, brought $10 million or $333,333 per unit.
Adam Levin, first vice president investments, and Robert Johnston, associate vice president investments, both in Marcus & Millichap's Palo Alto office, represented the a local family trust that was the seller of both properties and procured the buyer, a private capital fund. Levin tells GlobeSt.com:
“Redwood City continues to be an extremely sought-after submarket in the Bay Area. It attracts capital from all over due to the combination of Redwood City's affordability on a per-unit cost, higher yields and continued job growth that is at par or ahead of more expensive neighboring submarkets. I am bullish on Redwood City's continued rent growth.”
Built in 1964, 180 Buckingham Ave. is a freestanding three-story building with gated subterranean parking. The property has a mix of studio, one- and two-bedroom floor plans that average approximately 710 square feet. The 1331 Jefferson Ave. apartment building was constructed in 1963. The unit mix is all one-bedroom/one-bath apartments that average 650 square feet.
Johnston tells GlobeSt.com:
“Local job growth is outpacing new multifamily units, which contributes to a shortage of housing on the Peninsula, especially in Redwood City. With Box Inc. leasing 334,000 square feet downtown and Google adding close to a million square feet by the waterfront, Redwood City will continue to see an escalation in renter demand.”
Marcus & Millichap specializes in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed more than 7,600 transactions in 2014 with a value of approximately $33.1 billion. Earlier this spring, the firm's IPA division participated in an apartment transaction in San Mateo.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
