Walnut Creek Apartment Portfolio Trades Hands for $64.3 Million
- Mar 27, 2013
By Alex Girda, Associate Editor
A multifamily portfolio recently traded hands in the city of Walnut Creek after the completion of a deal made between seller JB Matheson and new owner Interstate Equities Corporation. Arranged by Marcus & Millichap’s multifamily brokerage division, Institutional Property Advisors, the deal includes three different apartment buildings located in Walnut Creek—the main business and entertainment hub of Contra Costa County. The fee that IEC paid for the residential portfolio stood at $64.3 million, according to a press statement issued by IPA.
The three apartment complexes were built between 1962 and 1964 and offer a combined total of 358 apartment units. The properties are Carmel House, located at 1756 Carmel Dr.; Cypress Creek, located at 1011 Ygnacio Valley Rd; and Creekside Glen, located at 125 Near Court.
The 283,075 square feet of residential space that Interstate Equities Corp. has acquired benefit from their location in one of the consistent submarkets of the San Francisco Bay Area. The average area of a unit stands at around 788 square feet, while apartments will feature one-, two- and three-bedroom floor plans.
According to IPA Executive Vice President of Investments Stanford Jones, “the investment appeal of these assets is driven by strong employment fundamentals both in Walnut Creek and the Interstate 580/680 corridors, resulting in a high-single-digits existing loss-to-leave.” The representative also pointed out that the portfolio’s overall net potential rent has seen an increase of 12.5 percent between August 2011 and July 2012, exceeding Walnut Creek’s median increase over the same time, which stands at 11.9 percent.
While the per-unit fee paid for the three apartment complexes, which stands at $180,000 per unit, is far below San Francisco’s strengthening figures, it is actually a solid number when taking into consideration the fact that Walnut Creek is located in the Contra Costa County submarket.
Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com
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