Colliers’ Bay Area Multi-Family Team Closes $30MM Quadfecta

1031 Exchange, San Francisco, Colliers International, Brad Lagomarsino James Devincenti 144 Parnassus 1516 Larkin 2665 Franklin 2642 2648 2654 Gough
144 Parnassus
144 Parnassus

Team Says Aggressive 1031 Exchange Buyers are Outpacing Well-Capitalized Local Players

SAN FRANCISCO – May 4, 2017 – Underscoring that investor demand for quality buildings in superior locations remains unquestionably strong in San Francisco despite some marginally lagging rents, Colliers International Executive Vice Presidents Brad Lagomarsino and James Devincenti have completed four multi-family investment transactions in the first quarter of 2017 valued at more than $30 million.

2665 Franklin

“Interestingly, aggressive buying from exchange buyers has sidelined well-capitalized local players, at least for now, for the finest apartment properties in San Francisco,” said Lagomarsino. “This is a trend we believe will continue through 2017 as demand outpaces the supply of available multi-family properties.”

The four sales were:

  • 144 Parnassus, a meticulously maintained, 18-unit corner apartment building located in Cole Valley that sold for $7,875,000, some $675,000 over the original asking price. This transaction is one of the highest prices paid per-square-foot for a property with more than 10 apartment units. The private buyer, who maintains a sizeable San Francisco multi-family portfolio, sold a commercial lot in San Francisco and purchased a high-quality, multi-family asset to satisfy the exchange. Ryan Wagner, Brad Lagomarsino and James Devincenti of Colliers represented the buyer and seller in this transaction. This asset will remain in the family for decades, noted Lagomarsino.
  • 1516 Larkin Street was purchased by a Peninsula-based investor who sold a mobile home park in the Central Valley of California. This trade-buyer accepted a 3.37 cap rate on the $5,840,000 purchase. of the property. There was a great deal of interest and multiple offers for this 13-unit asset, according to Devincenti.
  • 2665 Franklin Street is a 12-unit, corner apartment property that has been in the same family for more than 90 years. There were four offers on the property and it traded for $6,375,000, which was $736.31 per square foot and a 3.22 cap rate. Lagomarsino and Devincenti represented both the buyer and the seller.
  • 2642, 2648 and 2654 Gough consists of 18 one bedroom, one bath units with parking for 16 cars in the heart of Cow Hollow. The property sold for $9,950,000, which was $773.12 per square foot and a 4.04 cap rate. The buyer for these assets was in a 1031 exchange and sold a large syndicated deal in the Pacific Northwest as part of the transaction. Lagomarsino and Devincenti represented the buyer.
2642-54 Gough St

Lagomarsino claims that first quarter activity has seen 17 multi-family transactions in buildings with 10 or more units in the City, a modest number for a three-month period. Pricing for these sales, he noted, indicate that capitalization rates continue to compress, while per-square-foot prices and per-unit prices continue to climb.

“San Francisco remains one of the strongest markets in the country,” added Lagomarsino, “and these transactions, plus several others that are near-closing, will continue to demonstrate its strength.”

Colliers International Group Inc. (NASDAQ: CIGI; TSX: CIG is an industry leading global real estate services company with more than 15,000 skilled professionals operating in 68 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.

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1516 Larkin
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