FPA Multifamily Acquires 178-Unit Apartment Building for $55.5MM

Kennedy Wilson, FPA Multifamily Merritt on 3rd, Lake Merritt, Oakland, Regency Tower Apartments

By Catherine Sweeney 

Kennedy Wilson is making a significant profit selling the Merrit on 3rd apartment complex in Oakland for nearly double what it was purchased for in 2012. According to The Mercury News, the 178-unit apartment complex was sold on Aug. 23 to Orange County-based FPA Multifamily for $55.5 million, or about $311,797 per unit. 

The 18-story apartment building is located at 1130 3rd Avenue and consists of a mix of one- and two- bedroom apartment units. The property was built in 1975 and was originally called Regency Tower Apartments prior to undergoing a large-scale renovation and rebranding. 

Renovations on the building were done by Kennedy Wilson, which paid $31 million – or $174,000 per unit – for the property in 2012. According to Kennedy Wilson’s website, renovations included a new fitness center, poolside internet café, upgraded elevators and corridors and various in-unit renovations. 

The property is situated overlooking Merritt Lake and is in close proximity to a number of retail and restaurant amenities as well. Also nearby is the Lake Merritt BART station, the Oakland ferry terminal and Interstate 880.

The transaction adds to FPA Multifamily’s growing presence in the Bay Area. The Irvine-based company recently announced its new FPA Opportunity Fund VIII with a $1.35 billion targeted capital raise. According to previous reporting from The Registry, targeted investments would likely be in markets along the West Coast, including in Northern and Southern California, Seattle and Portland.

Founded in 1985, the company currently has assets located across the country. In total, FPA Multifamily’s $20 billion transactional history includes approximately 700 buildings with more than 130,000 units.

West Coast Commercial Real Estate News