25-Unit Apartment Community in San Leandro Sells for $6.8MM

Colliers, San Leandro, Foothill Terrace, Young Family, Foothill Terrace Group, East Bay Maple,, Manzanita Bay Properties
Courtesy of Colliers

(EDITOR’S NOTE: According to public records, the deal recorded on August 6th. The buyers are several limited liability companies under the names Abbott SL1 LLC, Foothill Terrace Group LLC, East Bay Maple LLC and Manzanita Bay Properties LLC. The LLCs are affiliated with the Young family.)

Sale highlights ongoing investor interest in value-add opportunities in the East Bay amid low occupancy and rising rents in near-urban submarkets

San Leandro, Calif. – Leading diversified professional services and investment management company Colliers recently facilitated the sale of a 25-unit multifamily property called Foothill Terrace in San Leandro. Colliers’ Senior Vice President Rich Martini procured the buyer and seller and oversaw the closure of escrow on August 6 for $6,875,000 or $275,000 per unit.  

“The sale of Foothill Terrace confirms the ongoing investor demand for well-located East Bay value-add multifamily properties,” said Martini. “Buyer interest was heightened by the presence of all two-bedroom, two-bath units as well as the opportunity to renovate unit interiors upon turnover, mark rents to market and significantly increase net operating income.”  

Martini added, “Demand for multifamily in East Bay markets such as San Leandro remains extremely high as apartment rents in these submarkets have held up very well over the past year and a half compared to more urban centers such as San Francisco and Oakland where COVID lockdowns triggered a mass exodus out of urban core cities.”Market fundamentals held strong in San Leandro over the course of the past year. Occupancy in San Leandro at the end of 2020 was 95.1 percent compared to overall East Bay occupancy which was 94.2 percent. Foothill Terrace’s unrenovated, partially renovated and fully renovated units turned in 2020 and averaged $2,106 per unit at lease up. 

Located on a 1.16-acre parcel, Foothill Terrace is comprised of four buildings with approximately 21,526 square-feet of rentable space. Each 848 square-foot apartment unit includes two bedrooms and two bathrooms, one of which is a true master bedroom with an ensuite bathroom and walk-in closet.  

Prior to putting the property on the market, the previous owner made considerable improvements to seven units, installing granite counter tops, new cabinets, bathroom vanities and shower surrounds, as well as vinyl plank flooring. Two units are considered fully renovated. The remaining sixteen unrenovated units were positioned to prospective buyers as having significant value-add potential to capture post-renovation rents 20 percent above current in-place rents. 

Additional improvements over the past several years were also made to the property’s exterior, including new siding, new roof and gutters, repair or replacement of eight balconies and new exterior paint. The property also boasts both covered and uncovered parking for 50 vehicles and three on-site laundry rooms.  

Foothill Terrace is located in the heart of the East Bay, minutes away from Downtown San Leandro and within a five-mile radius of the San Leandro BART station and Bay Fair Station. Its transit-oriented location puts residents near major freeways, making employment centers in Oakland, Fremont, San Jose and San Francisco completely accessible. A plethora of retail shopping in San Leandro, Castro Valley and Hayward offer a draw for prospective tenants looking for the comfortable lifestyle that a community such as San Leandro has to offer. 

About Colliers

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.

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