EMERYVILLE, CA—As Emeryville heats up with retail revitalization, tech headquarters and biotech clusters, investors are taking note. In fact, Los Angeles-based Decron Properties Corp. recently acquired Bridgecourt, a 220-unit multifamily complex with ground-floor retail, in a deal valued at $87.4 million. Built in 1998, the four-building complex is located at 1325 40th St.
The seller was a joint venture between Bascom Group and Carlyle Group. The purchase boosts Decron Properties' Bay Area portfolio to 650 units. Moran & Company represented both parties in the transaction.
Decron plans to complete a renovation program started by the seller, which included interior upgrades to 126 of the units featuring black/stainless steel appliances, quartz countertops, tile backsplashes, new cabinet doors and drawers, and upgraded lighting. Decron also will perform additional upgrades to the common areas, complementing the recently added dog park with a pet washing station, new landscape and hardscape improvements in the pool area, and a renovated fitness center and clubhouse.
When completed, Bridgecourt will be able to compete with newer class-A properties in the area. Bridgecourt sets aside approximately 90 apartments for low-income residents, which makes it a viable option for professionals and families priced out of San Francisco's rental market.
The complex is one of the first apartment communities after crossing the Bay Bridge into Emeryville. In addition to being in close proximity to the Emeryville-based headquarters of many recognized companies, Bridgecourt is within walking distance to the MacArthur BART station and the Emeryville Amtrak station, providing access to all major Bay Area employment hubs.
“Bridgecourt is one of the most job-centric apartment buildings in California,” Brett Betzler, partner at Moran & Company, tells GlobeSt.com. “It is one block from Pixar Animation's headquarters. It is also walking distance from Novartis and several dozen smaller biotech companies that surround it, and you can get to downtown Oakland or downtown San Francisco in 15 minutes.”
Bridgecourt offers a mix of one- and two-bedroom units, ranging from 554 to 1,179 square feet with in-unit washers/dryers. Common area amenities include a pool, spa, sauna, outdoor barbecue with seating area and a dog park.
“We were attracted to this investment because of the diversity and runway of the demand drivers that exist there,” said David Nagel, Decron president and chief executive officer. “In addition to being located in the center of the Bay Area triangle formed by San Francisco, Oakland and Berkeley, Emeryville also has reinvented itself into a vibrant corporate hub and prominent biotech cluster. It also boasts some of the most popular shopping and dining destinations in the East Bay.”
Bridgecourt has an estimated 8,889 square feet of ground floor retail, which is 100% leased. Tenants include GameStop, Verizon Wireless, Weight Watchers and East Bay Veterinary Clinic. The property also is adjacent to the East Bay Bridge retail center, and near the Public Market Emeryville redevelopment and the luxury lifestyle center Bay Street Emeryville.
“The San Francisco Bay area has been the best job creating market in the country since the great recession. The job/housing imbalance has put tremendous pressure on rents,” Nagel tells GlobeSt.com. “While being priced out of San Francisco, many working in the city would prefer not to live the life of a super commuter in the far out suburbs and are willing to pay a slight premium for a closer and more urbanized environment. We believe Emeryville in general and Bridgecourt specifically, is located in the middle of that demand curve for renters weighing the trade-off between housing costs and commute time.”
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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.
