Vallejo, CA (December 1, 2016) — ARA, A Newmark Company (ARA Newmark) announced it has recently completed the sale of several apartment communities in Solano County where rising rental rates make multihousing investments increasingly attractive. Average asking rental rates in Solano County have increased by more than 23 percent in the past two years as occupancy rates have remained stable at around 94 percent.
By comparison, Alameda and Contra Costa Counties’ average asking rental rates have increased 15 percent and 17 percent, respectively, in the past two years.
“As the urban core markets push against all-time high rental rates, the surrounding markets like those in Solano County continue to experience a high growth trajectory,” said Anthony Pappageorge, an ARA Newmark senior managing director. “Tenants and private investors alike are being priced out of the core markets and opportunities have shifted from San Francisco to Contra Costa and Alameda Counties, and ultimately to Solano County.”
“Due to the migration of high rental rate increases from the urban core to outlying markets, private investors are now finding value coupled with upside potential in Solano County,” continued Pappageorge.
ARA Newmark multihousing sales completed in Solano County in 2016 include:
The Ridge Townhomes — In mid-November, the 54-unit property located at 301 Fairgrounds Drive in Vallejo traded for $7.94 million. Anthony Pappageorge and Zachary LeBeouf represented the buyer in the transaction.
Pine Crest Villa — In late October, the 22-unit property located at 195 East Pacific Avenue in Fairfield sold for $2.7 million. Anthony Pappageorge and Zachary LeBeouf represented both parties in the transaction.
Forest Glenn — In August, the 68-unit property located at 237 Avian Drive in Vallejo traded for $10.4 million. Anthony Pappageorge, Richard Knutson and Zachary LeBeouf represented both parties in the transaction.
Redwood Gardens — In late January, the 51-unit property located at 2211 Redwood Street in Vallejo sold for $5.3 million. Anthony Pappageorge, Richard Knutson and Zachary LeBeouf represented both parties in the transaction.
Stretching from Vallejo/Benicia to Dixon along the Interstate 80 corridor, Solano County has a total population of approximately 436,000 concentrated in the three largest cities of Vallejo, Fairfield and Vacaville. Solano County is a short commute from two of California’s major employment centers — the San Francisco Bay Area and Sacramento. Top employers in Solano County include Kaiser Permanente, Genentech and Travis Air Force Base.
About ARA, A Newmark Company
ARA, A Newmark Company (ARA Newmark) is the largest full-service investment advisory firm in the nation that focuses exclusively on the brokerage, financing and capital sourcing of multihousing properties including conventional, affordable, distressed assets, notes sales, seniors, student, manufactured housing and multihousing land. ARA Newmark comprises the country’s top investment professionals who leverage a unique and fully integrated cooperative business platform of shared information, relationships and technology driven solutions. ARA Newmark’s unified enterprise approach ensures that clients are delivered the broadest asset exposure, effective matching of buyers and sellers, and the shortest transaction timeframes in the industry. The combination of global resources, unparalleled market expertise and nationwide presence in the multihousing marketplace has resulted in an annual production volume of more than $13.7 billion in real estate transactions in 2015. For detailed information on ARA Newmark’s extensive multihousing investment services, visit www.aranewmark.com.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 14,100 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.