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One after another, price records fall like dominoes.

EL SOBRANTE, CA—In another record-setting transaction demonstrating the strength of the Bay Area multifamily investment market, The Terraces, a 72-unit condominium-quality development, has sold for $21.1 million. At $293,055 per unit, the transaction ranks among the highest ever paid for a multifamily development, officials close to the transaction reported.

The buyer was Encino, CA-based James Investment Partners, while the seller was an affiliate of Abacus Capital Group based in New York City. Colliers International senior vice presidents Brandon Geraldo and Ryan Wagner represented both parties to the transaction. In 2015, Geraldo and Wagner negotiated the sale of the same property in a transaction valued at $16 million. This latest transaction represents a 34% increase in value in less than two years.

“So strong was the interest in this property from investors that we received multiple offers from a variety of Bay Area and Southern California investment groups,” said Geraldo. “This is the second-highest price achieved for any multifamily asset of $20 million or more in the East Bay this year and it demonstrates that the momentum of the multifamily investment market shows no signs of easing.”

Located in nine separate buildings on 6 acres at 6000 Sunhill Circle, the development was built in phases, beginning in 1991 with 24 units. The remaining 48 units were completed by 2003. All units are approximately 1,000 square feet and feature two-bedroom floorplans, each with private garages. Additionally, there are another 72 resident and 18 guest parking spaces. Each apartment is equipped with an in-unit washer and dryer. Community amenities include a swimming pool, hot tub and a playground.

“One after another, we are seeing price records fall like dominoes and values rise with never-before-seen rapidity,” Geraldo tells “But just as a caveat, though, we should note that thoughtful people, knowledgeable investors and academics here and in other major urban markets like LA and New York are beginning to look closer at how high multifamily values will rise and how long this cycle will last. A 34% increase in value in less than two years is truly stunning, but not every multifamily property is going to have that same result.”

In preparation for selling the asset, the property recently underwent a series of capital improvement upgrades including new exterior paint, resurfaced asphalt walk-bike-driveways, enhanced landscaping, and renovation of the onsite central leasing and management offices. Plans are being completed to relocate the community’s leasing office and convert a fitness center.

“This was an excellent opportunity for an investor to purchase an impeccably renovated and historically stable asset that will be easy to manage and will provide, over time, an option to bring rents to market levels,” said Wagner. “Demand for quality apartment homes in the greater San Francisco Bay Area continues to reach record levels as the barriers to homeownership remain extremely high following the Great Recession, especially among those looking to buy their first homes.”

Located close to both downtown San Francisco and downtown Oakland, The Terraces attract those working in the two major employment centers and are within easy reach of a variety of commuting options. The property is located approximately 35 minutes by car to downtown San Francisco and 20 minutes to Oakland.

“If nothing else, this was a classic case of ‘location, location, location,’ that old but true cliché,” Wagner tells “This property, which is almost equidistant from the two downtowns of San Francisco and Oakland, where most of the residents work and commute to every day, is unusual in that respect. We must also remember that the Bay Area overall has been transformed from the charming little tourist mecca it was for 100 years or more, to what it is today–the headquarters for the largest tech companies on the planet. As a result, as these companies continue to see record employment growth and their workers need to be housed somewhere. And here we are in an upscale area, with a decent commute to either city center and quality renovated apartments.”

About Colliers International Group Inc.
Colliers International Group Inc. (NASDAQ and TSX: CIGI) is an industry-leading global real estate services company with 15,000 skilled professionals operating in 68 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 12 consecutive years, more than any other real estate services firm. Colliers also has been ranked the top property manager in the world by Commercial Property Executive for two years in a row.

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