(EDITOR’S NOTE: According to sources familiar with the transaction, the pricing on the deal was $16.7 million, representing a price per net rentable square foot of close to $675, or around $222,666 per unit.)
The Vue de Lac apartments, located two blocks from the southern edge of Lake Merritt, has traded for the first time in a generation. The iconic 75-unit property traded in what is one of the largest rent-controlled properties to transact in the last decade in Oakland. Colliers International represented the private seller and procured the institutional buyer in the transaction.
The 75-unit property was originally constructed in 1908 and offers a mix of studio, one-bedroom and two-bedroom units throughout three structures on three adjacent parcels. Although the property was originally built over 100 years ago, the property is in excellent condition offering clean renovated interiors, mostly new windows, substantially upgraded electrical service and meticulously maintained period details.
The Colliers team on the assignment was lead by Ryan Wagner and Brandon Geraldo, both Executive Vice Presidents in the Colliers San Francisco office. Along with team members Kalah Espinoza and Matt Flaherty, the Colliers multifamily team in San Francisco has completed over $325,000,000 in multifamily dispositions during the last 12 months, making them one of the most active brokerage teams in Northern California.
According to Wagner and Geraldo, the last several weeks and overall market uncertainty have lead investors to a flight to quality and a specific interest in well-located rent-controlled multifamily assets. “One of the main benefits of owning rent-controlled housing is that there is usually significant upside in the rents, which protects your downside”, said Wagner. In recent conversations, they shared that investor demand is mixed, with very little short-term clarity, but the long-term investors are still actively engaged and looking to deploy additional capital into one of the safest assets classes during any market – stabilized multifamily investments.
About Colliers International Group Inc.
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 13,000 professionals. Colliers is the fastest-growing publicly listed global real estate services and investment management company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $25 billion of assets under management from the world’s most respected institutional real estate investors.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.
Colliers is led by an experienced leadership team with significant equity ownership and a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years.
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