Obsolete Strip Mall Gives Way to 90 Units

REDWOOD CITY, CA—While the Bay Area remains in lockdown mode, industry experts are putting stock in the multifamily sector’s durability. Most are betting that tech firms will eventually bring workers back into office space.

One property is on the receiving end of that optimism. A 90-unit multifamily asset Encore was recently sold to an undisclosed buyer. The property located at 855 Veterans Blvd. was built, leased and managed by Sares Regis Group of Northern California and its affiliate companies.

“It’s been rewarding for us to watch the Encore community form and grow over the years, from construction to leasing,” says Jeff Smith, senior vice president of Residential Development at Sares Regis Group of Northern California. “Since the start of the project in 2016, we’ve worked hard to build and deliver this beautiful community for the benefit of its residents and the surrounding neighborhood, and we are confident that it will be in good hands moving forward.”

Located near the intersection of Veterans Boulevard and Main Street, Encore has a 90 very walkable rating from Walkscore and is a 10-minute walk to Caltrain.

The community is a half-mile from Highway 101, making it accessible for those with north and southbound commutes. Encore also offers seven affordable apartments available to the public through a lottery system monitored by Redwood City officials.

“Since acquiring this property nearly five years ago, it has been a rewarding path through the design, planning, construction and lease up of Encore,” Smith tells GlobeSt.com. “We are proud to have repurposed an obsolete strip mall and parking lot into 90 beautiful luxury apartments that support Redwood City’s need for housing.”

The six-story building features nearly 5,000 square feet of amenity space. Amenities include a fitness center, top-level roof deck and adjoining community room; outdoor courtyard with barbecue, fireplace, and lawn games; outdoor community herb garden and dog run, WiFi-enabled common areas, multi-level parking garage with EV charging stations, and bike storage spaces.

The transaction was brokered by the team of Stan Jones, Phil Saglimbeni, Sal Saglimbeni and Alex Tartaglia at Institutional Property Advisors.

Many investors and lenders are waiting to see what the durability of multifamily demand will be as the health crisis continues to keep large sections of the Bay Area economy shuttered. Beyond the pandemic, big tech will being to bring employees back into offices, supporting long-term demand, according to a report by Marcus & Millichap.