The 32-unit apartment community is located downtown near schools, retail and transportation hubs.
PALO ALTO, CA—This city's investor demand is driven by strong employment fundamentals and low vacancy levels. In fact, job growth in Santa Clara County is projected at 38.2% in the 20 years from 2005 to 2025, which is higher than the surrounding Bay Area projections due to the high-tech punch of firms such as Tesla, SAP, VMWare and Hewlett Packard, for starters.
This bodes well for the multifamily acquisition climate. While it is true that the local multifamily market is tightening, a recent $16.8 million acquisition located at 283-301 and 327 Curtner Ave. proves that value-add opportunities are still available for multifamily investors in this region.
“In a market with exceptional fundamentals and tremendous investor demand, this acquisition represented a unique opportunity to help a private investor exchange into a core property with long-term value potential,” says Adam Levin, senior managing director of Levin Johnston of Marcus & Millichap.
Levin and Robert Johnston, also a senior managing director, represented the buyer, a private high net-worth investor, as well as the seller, a Northern California-based multifamily development company.
“The investment appeal of this asset is driven by Palo Alto's exceptional fundamentals,” says Johnston. “This city is thriving, and property owners and investors continue to reap strong benefits.”
The 32-unit apartment community is located downtown with proximity to schools, shopping, dining, transportation hubs, and major employers such as Facebook and Tesla. The property was recently renovated to include an upgraded community barbecue area and pet washing station.
“This is a well-maintained property with high occupancy that benefits from a growing renter base, which will sustain long-term demand and value creation,” Levin tells GlobeSt.com.
This acquisition comes on the heels of another Levin Johnston multifamily transaction in Pleasanton, CA. Vista Del Sol, a 73-unit multifamily asset, traded for $24.25 million. Levin and Johnston represented both the seller, a private LLC, and the buyer, a local investor, in the transaction.
Earlier this fall, Levin Johnston also directed four multifamily property trades totaling $36.25 million in Redwood City, CA.
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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.
