By Jon Peterson
In a sign that interest for multifamily properties across the Bay Area remains unabated, the Rolling Hills Estates and San Francisco-based Cumberland Holdings has acquired the 72-unit apartment and retail complex Pacific Place in Daly City located at 2665 Geneva Avenue. The purchase price on the acquisition was $33.6 million, according to public records.
The seller of the property, an entity associated with San Diego-based Gleiberman Investments, was represented by Palo Alto-based Institutional Property Advisors, and the marketing efforts on the transaction were led by Stanford Jones, Salvatore Saglimbeni, Philip Saglimbeni and Alexander Tartaglia. The listing agent team did not respond to phone calls seeking comment for this story.
The complex will be managed by Portland, Ore.-based Affinity Property Management, which will take care of all third party management services on the property.
The asset is considered to be a core plus asset. It was originally developed in 2009 as a for-sale condominium project, but since that time it was converted to an apartment complex. The asset also has around 11,000 square feet of retail space included in the complex, which is comprised of three retail suites on the property. One tenant occupying a retail location in the building is Domino’s Pizza. The shared amenities in the property include underground parking, a roof deck and a 24-hour fitness center.
The asset is a five-story complex. It has a combination of one- to three-bedroom units that have rents ranging from $2,732 to $3,377 per month, according to industry sources. Pacific Place has a strong location in the northern portion of the San Mateo County. The property sits just a few miles miles from South San Francisco’s a major life science cluster, and it is in close proximity to the city of San Francisco, as well.
The new ownership secured $23 million of acquisition financing through San Francisco’s NorthMarq office, according to a statement from NorthMarq. The floating rate bridge loan was structured with a 5-year interest-only term and includes a $3 million holdback to allow the Cumberland to complete a retail conversion that will add seven residential units, NorthMarq stated.
Cumberland Holdings is a relatively new player in the commercial real estate market. In July of 2020, the company celebrated its 10th anniversary. It was started by the Chernoff family to invest its capital alongside investors in income-producing real estate strategies, where the family has spent decades developing expertise, according to the company’s web site.
The company has three offices across the West Coast today. These are in San Francisco and Rolling Hills in California and one in Bend, Ore. During its first 10 years of operation, the company has acquired 20 properties in California, Oregon and Washington and have sold 7 of these properties. Cumberland Holdings works with over 200 active private investors, with more than 70 percent of them engaging in multiple investments.
The company targets investments in value-added, multi-family and mixed-use commercial real estate in several West Coast markets, according to the company’s statement. Cumberland looks to purchase properties that suffer from absentee ownership and poor management and then it works to develop a capital improvement plan to enhance the curb appeal and marketability of properties’ preexisting conditions.