Colliers Claims Lowest Capitalization Rate in Past Five Years

Colliers, San Francisco, Hillsborough, Nob Hill, Adak Investors, Pacifica, Capitol Investments,

1535 Leavenworth St SFrevSAN FRANCISCO – April 6, 2015 – A 13-unit apartment building in San Francisco has been sold to a Hillsborough investment partnership in a transaction valued at $2.7 million and, in the process, has achieved something no other multi-family sale has managed to do for the past five years – achieve the lowest capitalization rate for a 10-unit or larger building, Colliers International has reported.

Located at 1535 Leavenworth Street on Nob Hill, the 1907-era building, which is fully occupied, sold for $322 per square foot, or $207,692 per unit, at a cap rate of 1.97 percent, according to Colliers’ Payam Nejad, who represented Adak Investors, a Pacifica, California-based investment firm, in the sale. Ali Khostovan with Capitol Investments represented the buyers.

“There was 133% upside in the rents,” said Nejad. “The trapped equity due to rent control will prove to make this a great investment once the units eventually turn.”

The historic three-story property itself consists of seven 1-bedroom/1 bath, two 2 bedroom/2 bath, one 3 bedroom/2 bath units and one parking space. It totals 8,376 square feet. It will continue to be part of a larger investment portfolio held by the partnership.

About Colliers International
Colliers International is a global leader in commercial real estate services, with more than 16,300 professionals operating out of 502 offices in 67 countries. A subsidiary of FirstService Corporation, Colliers International delivers a full range of services to real estate occupiers, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. Colliers International has been recognized and ranked by the International Association of Outsourcing Professionals’ Global Outsourcing 100 for 10 consecutive years, more than any other real estate services firm. For the latest news from Colliers International, visit Colliers.com, or follow us on Twitter (@ColliersIntl) and LinkedIn.

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