Park Hacienda is located at 5650 Owens Dr. less than one mile from the Dublin/Pleasanton BART station.
PLEASANTON, CA—Park Hacienda, a 540-unit garden-style apartment community within the Hacienda Business Park, recently sold for a whopping $248 million. Acacia Capital Corporation purchased the offering for approximately $459,000 per unit, making it one of the largest single-asset value-add multifamily sales in Bay Area history.
Park Hacienda is situated on 24 acres at 5650 Owens Dr., less than one mile from the Dublin/Pleasanton BART station. The property's location within the Hacienda Business Park offers residents with access to more than 550 employers and an abundance of nearby retail. Originally completed in 2000, the property has been partially renovated and features one-, two- and three-bedroom floor plans averaging 998 square feet. Renovated units are equipped with stainless steel appliances, full-size washers and dryers, and personal patios with storage. Community amenities include two swimming pools, a fitness center, covered and underground parking, and direct public park access.
JLL capital markets marketed the property on behalf of the seller, Equity Residential. The marketing team included managing director Scott Bales, senior director Peter Yorck, and analysts Nolan Moore and Max Machiorlette.
Equity Residential had completed extensive interior renovations on 60% of the 540 units. Acacia Capital plans to improve the remaining 40% of units as well as extensive exterior and common area improvements, GlobeSt.com learns.
The most impactful change affecting multifamily investors in 2020 is the commencement of the statewide rent control law, Assembly Bill 1482. The new law took effect on January 1, 2020 and sets a limit on the maximum increase in rental rates on all multifamily rental units in California. As of January 1, annual rental increases in California are restricted to 5% plus CPI (which historically has averaged approximately 2.5% in California), the total of which is not to exceed a 10% maximum, according to a Colliers International report.
Multifamily developments that are less than 15 years old, duplexes where the owner lives in one unit and all single-family homes except those owned by large corporations are still exempt from this limit on rental increases. In cities with current rent caps such as San Francisco, Oakland and San Jose, housing that is 15 years or older and exempt from local rent control under Costa Hawkins will be restricted by AB 1482.
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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.
