By Jon Peterson
Secondary and tertiary markets across Northern California have benefited significantly since the global COVID pandemic broke. With flexible work schedules, employees began moving deeper into the suburban neighborhoods, creating an increase of demand for housing. Investors have been following the demographic shifts and entered these markets looking for opportunities. In some cases, municipalities have endeavored into the acquisition game, as well. In one such example, the City of Brentwood through its redevelopment agency and in partnership with San Francisco-based SteeleWave acquired the 137-unit Avery at TownCentre in Brentwood for $49.5 million, according to information stated in public documents.
SteeleWave had been part of the ownership of the property previously along with San Diego-based ConAm, which exited the ownership with this transaction. The listing agent on the sale of the property was the San Francisco office of Cushman & Wakefield. Those working on the transaction included Jason Parr and Scott MacDonald, among others. Cushman & Wakefield did not respond to phone calls and emails seeking comment for this story.
The purchase price on the property comes in at $361,313 per unit, the buyers obtained acquisition financing on the property from Prudential for $32 million, or roughly 65 percent of the purchase price, as stated in public documents.
Avery at TownCentre is located at 1275 Central Blvd. The property was developed in two phases in 1991 and 1997, and according to the property’s website, it has current rents that range from $2,220 to $2,915 per month. The shared amenities in the property include a 24-hour strength and cardio center, a business center and clothes care facility.
The complex is also in proximity to a number of amenities that renters will find valuable. One of these is the Los Medanos College, a community college in the East Bay. The school is located one mile from the property and is reachable in a four-minute walk. The Brentwood Towncentre Plaza is a property that is located less than half a mile, or a six-minute walk, from the apartment complex.
Avery at TownCentre is located in Contra Costa County. This Northern California submarket has a total of 66,187 units, according to data compiled by Cushman & Wakefield. The vacancy rate in the region was at 4.7 percent through the first quarter of this year.