Avalon Bay Sells San Francisco South of Market Apartments

San Francisco, housing, Bay Area news, San Francisco real estate news, Perkins Coie, Trumark Urban, Polaris Pacific, planning commission

By Jon Peterson

Arlington, Va.-based AvalonBay Communities Inc. has sold the Avalon Yerba Buena apartment property at 788 Harrison St. in San Francisco for $103 million to LaSalle Investment Management in an all-cash deal.

San Francisco real estate The RegistryAvalonBay acquired the property in January 2006 for $66 million. The property sold at less than a 4 percent capitalization rate, according to AvalonBay.

The sale of the property occurred this month, according to the real estate investment trust’s 2012 operating results, announced today.

The property has 160 apartments and 32,000 square feet of retail space, all of it occupied by a Whole Foods grocery store. The property was first developed in 2000.

The average price for an apartment unit in San Francisco was $244,000 last year, according to Cassidy Turley Commercial Real Estate Services. Archstone did not break out the cost per apartment of the Harrison Street property excluding the retail property piece.

The sale of this property comes as the apartment owner is planning to acquire nine communities in the Bay Area totaling 3,251 units from Englewood, Colo., -based Archstone Enterprise L.P. The agreement was announced in late November. The closing date on this transaction is projected to be March 1.

Avalon Bay is a major owner of apartments in the San Francisco Bay Area. According to a statement filed by the company on Jan. 30, it owns 5,220 units in the region through the end of 2012. This includes 1,079 units in San Francisco, 2,442 units in San Jose and 1,699 units in Oakland and the East Bay.

West Coast Commercial Real Estate News