Transaction reflects renewed confidence and rebound of multifamily sector
“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.
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Allison + Partners Northern California