Transaction reflects renewed confidence and rebound of multifamily sector
OAKLAND, CA (May 6, 2021) – Leading real estate professional services and investment management company Colliers recently facilitated the sale of a 41-unit apartment building called Terrace Towers in Hayward. The property closed escrow on April 8, selling for $8,990,000. Colliers’ Senior Vice President Ryan Rodriguez and Vice President Gavin McDowell represented both the buyer and seller.
“We are just now starting to see the uncertainties that loomed over 2020 clear with a return of investor confidence and a stronger demand for multifamily assets,” said Rodriguez.
Rodriguez added, “This was a unique asset in that it was 50% vacant at the time of the sale and traditional debt sources were not available. Despite all this, we received half a dozen offers and were under contract within a few weeks of marketing the property.”
Terrace Towers is a low-rise, three-story apartment complex in Hayward Hills, California. Originally built between 1961 and 1962, the building is comprised of 28 one-bedroom, one-bath units and 13 two-bedroom, one-bath units. The property’s onsite amenities include a swimming pool, future controlled access, 52 parking spaces and laundry facilities.
The ubiquity and proven productivity of remote work have resulted in a mass migration from Northern California’s urban centers to more suburban areas. Five of the top thirteen largest multifamily transactions completed in the second half of 2020 in the Northern California region occurred in the Sacramento area. Compared to the San Francisco and San Jose submarkets, which posted double digit annual rent decreases and significant occupancy loss, secondary markets like Sacramento, Stockton and Modesto saw modest increases in rent and sales. Even with a readily available vaccine supply, the affordability and lower density of suburban markets will be a continued area of interest among investors and renters.
About Colliers International
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.
Media Contact:
Solana Tanabe
Allison + Partners Northern California
ColliersNorCal@allisonpr.com
“We are just now starting to see the uncertainties that loomed over 2020 clear with a return of investor confidence and a stronger demand for multifamily assets,” said Rodriguez.
Rodriguez added, “This was a unique asset in that it was 50% vacant at the time of the sale and traditional debt sources were not available. Despite all this, we received half a dozen offers and were under contract within a few weeks of marketing the property.”
Terrace Towers is a low-rise, three-story apartment complex in Hayward Hills, California. Originally built between 1961 and 1962, the building is comprised of 28 one-bedroom, one-bath units and 13 two-bedroom, one-bath units. The property’s onsite amenities include a swimming pool, future controlled access, 52 parking spaces and laundry facilities.
The ubiquity and proven productivity of remote work have resulted in a mass migration from Northern California’s urban centers to more suburban areas. Five of the top thirteen largest multifamily transactions completed in the second half of 2020 in the Northern California region occurred in the Sacramento area. Compared to the San Francisco and San Jose submarkets, which posted double digit annual rent decreases and significant occupancy loss, secondary markets like Sacramento, Stockton and Modesto saw modest increases in rent and sales. Even with a readily available vaccine supply, the affordability and lower density of suburban markets will be a continued area of interest among investors and renters.
About Colliers International
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.
Media Contact:
Solana Tanabe
Allison + Partners Northern California
ColliersNorCal@allisonpr.com
