Multifamily Property Hits on All Cylinders for JV Buyers

The Bridge ownership plans to modernize the outdoor living spaces.

HAYWARD, CA—Vacancy levels are tight here and forecast to become even tighter through 2020, as the area continues to add jobs at a projected rate of approximately 110,000 jobs per year. In this supply-constrained submarket with no new rental units completed since 2014, the plans for a repositioning effort on a circa-1986 multifamily property make sense. This effort is to follow the sale of The Bridge , a 544-unit multifamily property, purchased by a joint venture of New York City-based fund manager, Phoenix Realty Group , and Boston-based Intercontinental Real Estate Corporation . Located at 25800 Industrial Blvd., The Bridge consists of 29 two- and three-story buildings and is situated on a 22-acre site. Keith Rosenthal , president of Phoenix Realty Group, tells GlobeSt.com: “The Bridge hits on all cylinders with everything that we look for in a property. It represents a significant opportunity to improve apartment units to contemporary standards and create rent growth, while still offering a value to residents compared with newer construction. In addition, it’s in a high barrier to entry/supply-constrained rental market surrounded by major employment centers.” Centrally located between downtown San Francisco, Silicon Valley and downtown Oakland, the property is situated in close proximity to two BART stations and the San Mateo Bridge. According to Axiometrics , within a 40 minute commute from The Bridge are a variety of employment centers, comprising more than 3.2 million jobs in industries including tech, healthcare, education and electronics. “We’ve established a program based on competitive investment strategies, which is proven through our continued relationship with Intercontinental,” said Rosenthal. “The Bridge is a primary example of our class B, high barrier-to-entry market focus, allowing us to further expand our presence in the Bay Area and California, and invest in a property type which we understand and do well with. We have no doubt that, with the planned improvements, we’ll be able to reach renters within the region who are looking for upscale amenities and contemporary unit interiors at a better value.” The Bridge includes one-bedroom and two-bedroom units, which feature private patios and balconies, storage units as well as washer/dryers in select units. Amenities of the property include swimming pools and spas, a newly constructed clubhouse, fitness center and business center, and a children’s play area as well as picnic and barbecue areas. The new ownership will implement an improvement program to enhance the property’s marketing appeal with upgraded amenities and finishes. Plans also include efforts to modernize the outdoor living spaces for residents. “With The Bridge’s appealing mix of upscale amenities along with its proximity to major employment hubs in the Bay Area, this asset provides a key opportunity for us to meet the needs of the rental community by providing quality housing at competitive rents,” said Jessica Levin , director, acquisitions and member of Intercontinental’s investment committee. The joint venture will retain Phoenix Realty Group’s strategic partner and affiliate, ConAm Management , as property manager, which currently manages more than 50,000 units nationwide. “The Bridge benefits from a highly sought after long-term rental pool and strong employment market, with excellent access to major metros, including San Francisco, Silicon Valley and Oakland,” said Alex Saunders , managing director of Phoenix Realty Group’s acquisitions group. “In addition, improved market conditions, coupled with limited land availability for future construction, make this a great opportunity for PRG to invest in a high barrier-to-entry market.” John McCulloch , ARA , a Newmark Company , represented the buyer and undisclosed seller in the transaction. Trevor Fase of Walker & Dunlop arranged a loan assumption and supplemental loan for the acquisition. Phoenix Realty Group continues to actively invest in multifamily properties on the East Coast, West Coast and the Mountain States.