By Jon Peterson
Multifamily sales continue to drive transactions across the Bay Area as interest in the sector continues unabated. In a transaction that was just announced, San Francisco-based Fowler Property Acquisitions closed on its $18 million (just over $214,000 per unit) purchase of the 84-unit Crestview Pines Apartments in Antioch located at 1600 Aster Drive, according to sources familiar with the sale of the property.
The property was sold by Petaluma-based Kadami Enterprises. Both the buyer and seller were represented in the transactions by the Oakland office of Colliers.
“The sale of the Crestview Apartments is a clear example of the amount of institutional capital pursing mid-market deals across the country. We sourced 11 offers for the property, but the terms and aggressive nature of the institutional players in this space will be the benchmark for the next six to 12 months,” said Gavin McDowell, a vice president with Colliers. He worked with both parties on the transaction. “We expect to see continued cap rate compression as multifamily remains one of the most sought-after asset classes.”
Crestview offers a mixture of opportunities for its renters. These include a combination of one, two and three-bedroom units. The type of parking available for the tenants includes covered, surface and street parking, while some of the shared amenities in the complex include landscaped courtyard, gated swimming pool, a clubhouse and controlled access.
The renters do have a 10-minute drive to the Antioch Bart Station. Within a one-mile radius of the apartment complex is over 523,000 square feet of retail that is occupied by many national tenants. Some examples of them include Costco, Target, Big 5 Sporting Goods, PetSmart and CVS. National restaurant chains include Chili’s Outback Steakhouse, Red Lobster and Olive Garden. A major employer in the area is Kaiser Permanente, which is located just 1.5 miles away.
Fowler Property is working to invest capital for its commingled fund that goes by the name of FPA Core Plus Fund V in other opportunities, as well. The real estate manager has a nationwide investment strategy, and it is considering properties that have only minor physical or operational issues.
The manager prefers properties that can produce net returns in the range of 9 percent to 11 percent, according to sources that are aware of the commingled fund’s strategy. To date, it has raised a total of $950 million of equity for its investments. The fund had attracted commitments from some major pension funds and sovereign wealth funds around the country. These included the State of Wisconsin Investment Board, Tennessee Consolidated Retirement System and the New Mexico State Investment Council.