Thai Company Buys Bay-Area M-F Tower for $103M
- Sep 12, 2013
Bangkok-based Land & Houses PCL, Thailand’s largest homebuilder, has purchased Domain, a 264-unit, luxury transit-oriented rental community in Oakland, Calif., for $103.2 million. The sale was announced Tuesday by Institutional Property Advisors, a division of Marcus & Millichap, which arranged the transaction for the seller, an affiliate of Berkshire Property Advisors, Boston.
The Bangkok Post reported that the building is currently 96 percent occupied and that the buyer is funding the purchase through bank loans.
Located at 1389 Jefferson St., the building was completed in 2011 and is within a three-minute walk of the 12th Street Oakland City Center BART station.
Domain includes studios and one-, two- and three-bedroom apartments averaging about 948 square feet. Unit amenities include floor-to-ceiling glass, full-size washers and dryers, and kitchens with stainless-steel appliances and natural stone countertops.
Community amenities include a sky-deck outdoor terrace with dining area, outdoor kitchen and lounge seating; a 24-hour fitness facility; a yoga studio with Pilates equipment; a bike maintenance workshop; a resident lounge with Wi-Fi access and coffee station; secure podium parking; and valet door-to-door trash and recycling services.
“Oakland experienced approximately 13 percent rent growth last year alone,” IPA vice president/investments Philip Saglimbeni said in a statement. “In addition to the continually improving local employment fundamentals, various competing properties are now converting to for-sale condominiums. The combination of these factors suggests rental rates will continue to climb throughout the Oakland market.”
Transit-oriented developments “are highly sought after by both institutions and large private buyers,” added IPA executive vice president/investments Stanford Jones.
On a separate matter, The Wall Street Journal reported on Aug. 21 that Land & Houses is considering an offering of up to $600 million in real estate assets. The IPO of the assets, in the form of a property trust, could take place by the fourth quarter, as Land & Houses reportedly is currently in discussions with banks.