In a transaction that came down to the wire, Sausalito-based FH One Investments made a decision to pitch the seller of two Mill Valley properties it wanted with an all-cash offer and closed a sale that was likely going to another buyer.
The company’s purchase included two buildings, the nine-unit 19 Knoll Lane building and the 12-unit 1030 Redwood Hwy. building. In total, the company paid $9.4 million for the pair, or $447,619 combined for the 21 units.
“We were in a 1031 exchange, so we were kind of pressed for a deal that’s materialized. It’s a really dry capital market environment, right now, and there’s isn’t too much to buy. So, it worked out pretty well. We had to get aggressive and get it done,” said Daria Hosseinyoun, president of FH One.
Such is the state of the multifamily market across the greater Bay Area, today. It is a seller’s market, so the buyers have to be quick and nimble and have the cash to spend in order to make deals pencil out. This is especially true in very tight submarkets such as Mill Valley, a place not known for the big deal flow.
“This is a fantastic location in Mill Valley behind the Strawberry Shopping Center. Southern Marin, particularly Tiburon, Mill Valley location is something that just can’t be beat,” added Hosseinyoun.
FH One worked with John Garrett from Marcus & Millichap on the transaction and this broker was also able to represent the seller in the deal.
The company plans to invest in upgrading the properties in order to add value to the properties in the future. Hosseinyoun stated that the level of spending was not finalized, yet, but the improvements will be made to the common areas, the pool and also inside the units.
FH One is a boutique real estate investment and management firm with experience in commercial real estate and rental markets, according to the company’s website. In September of 2021, the company spent $14 million to acquire another value add opportunity—1625 Clay Street, an eight-story, 43,000 square-foot historic office building in downtown Oakland. The company embarked on a renovation of some of the floors and the lobby of the building, which it is hoping to finalize by mid-2022.