By Jon Peterson
Arlington, Va.-based AvalonBay Communities has acquired the 8.4-acre apartment development site in Pleasanton located at 4452 Rosewood Drive. The purchase price was $27 million, as stated by sources familiar with the sale of the land.
AvalonBay did not respond to an email seeking comment for this story.
The seller of the land was San Francisco-based Swift Real Estate Partners. It declined to comment when contacted for this story. The listing agent on the sale was a combination of both JLL and Colliers. One person involved in the transaction was Matt Kroger, a senior managing director with JLL.
The site in Pleasanton was fully entitled when the land was brought to the market for sale in July of last year. There was no pricing guidance offered on the property at that time. The development site allows for a total of 305 units to be constructed on it, however, no timing has been established for the development project to start or projected completion date.
This project will be a rare one for the City of Pleasanton. When the marketing efforts for the site began, it was the only fully-entitled site that the city had at that time. It also represented the last approved residential development site within the Hacienda Business Park. In the summer of 2021, Simon Property Group began planning a 486-unit project at the former Sears site at the Stoneridge Shopping center. At that time, it still had to go through the approval process.
The apartment project that AvalonBay just acquired will have two types of units planned for the development. The current design calls for 108 garden-style units and 197 podium-style units. There will be an affordable component to the property equal to 46 units representing 15 percent of the project.
A financial factor for the Swift development site is lower impact fees. As currently entitled, the site secured development impact fees when the project was originally entitled in 2013. The City of Pleasanton has subsequently increased multifamily impact fees by almost 40 percent in 2019, so any new or planned development project approved after that time will likely have fees that are significantly higher than Swift’s project.
AvalonBay is a major owner of apartment assets in Northern California. According to its first-quarter 2022 earnings report, it owned a total of 12,120 units in the region with an economic occupancy on the entire portfolio of 95.8 percent. The public REIT owns assets in a variety of markets including San Francisco, San Jose, Mountain View, Sunnyvale and Walnut Creek.