By Jon Peterson
Greensboro, N.C.-based Bell Partners is growing its apartment portfolio in Northern California with its most recent acquisition. The company just paid $85.2 million to purchase the 232-unit ($367,241 per unit) Windsor at Redwood Creek property in Rohnert Park, located at 600 Rohnert Park Expy W.
The new owner is planning to rename the property Bell Rohnert Park. “This asset is an excellent addition to our growing West Coast portfolio, which fills the increased demand from some renters in major metros to reside in high quality suburban locations,” says Nickolay Bochilo, an executive vice president of investments at Bell Partners.
The seller of the complex was a partnership between the Oregon Public Employees Retirement Fund and Boston-based GID. The listing agent on the sale was Palo Alto-based Institutional Property Advisors, which was led by Phil Saglimbeni, executive managing director of investments.
“I think this transaction is a good example of investors looking more at suburban markets like Marin and Sonoma Counties being in more demand from renters since the start of the pandemic [and] the commute patterns are not as severe,” said Saglimbeni.
Bell is planning to make some improvements to the asset in Rohnert Park. These changes will include a targeted capital expenditure program focused on common area amenities and apartment interiors. The asset, which was first developed in 2005, was 98 percent leased at the time of the sale.
Bell has acquired the property for its commingled fund called Bell Partners Fund VII. The real estate manager completed the capital raise for the fund last year with total commitments of $950 million, according to published reports.
Oregon PERF and GID had owned the property since 2006. “The decision to sell the property was based on normal portfolio management factors. The asset has been a great performing property throughout our hold period. Our investment program with GID does not include a large component of renovations and value-add work. Given how long we’ve had the property, the decision was made that there are large buyer pools seeking such property profiles and will factor into the sales pricing,” says Anthony Breault, senior real estate investment officer for Oregon State Treasury, which makes investment recommendations for the pension fund.
Oregon PERF will be re-investing the sales proceeds from the Rohnert Park sale into other projects. “We have a number of properties under development with GID across the country, so the equity can be recycled to bring these newer assets into the portfolio. The locations of these new developments are South Florida, Texas, Massachusetts and the Pacific Northwest,” said Breault.
Bell Partners now owns two assets in Northern California. The fund manager acquired the 80-unit Maxwell, now called Bell Uptown District, in Oakland in 2018. It paid $44.6 million for the property, according to public records. The asset is located at 1801 Jefferson.