By Jon Peterson
Boston-based General Investment and Development has acquired the 129-unit Eviva Mission Bay apartment complex in San Francisco for $86.25 million, or $668,000 per unit, according to sources aware of the transaction. The complex is located at 360 Berry Street.
GID did not respond to phone calls seeking comment for this story.
The property was sold by Integral Development based in Atlanta. This company was the developer of the property, and the asset was completed earlier this year. The listing agent on the sale was the Palo Alto office of Institutional Property Advisors, a division of Marcus & Millichap.
“This property did attract a great deal of institutional interest, as we conducted a full marketing effort on the property. There continues to be a large number of capital sources that are looking to buy brand new core apartment assets in San Francisco,” says Phil Saglimbeni, senior managing director with IPA. He was the lead person on the listing. Others involved at IPA were Stan Jones and Sal Saglimbeni.
IPA did not comment on the cap rate on the sale due to a non-disclosure agreement signed with the seller. The asset was acquired through an all cash transaction, and the new owner has renamed the property to Mission Bay by Windsor.
The strength of the property was reflected in the leasing activity that occurred during the time the property went through the sales process. “As we were selling the property, the complex averaged 18 to 20 leases signed per month. I think this is a strong number and shows how much renter demand there is for apartments in San Francisco, even though there is a great deal of units being constructed in the city,” said Saglimbeni.
The property has a combination of both market rate and affordable units. The breakdown is 103 apartments, or 80 percent of the project, as market rate units with the other 26, or 20 percent of the project, as affordable units.
GID operates in the Bay Area out of a regional office in San Francisco located at 455 Market Street, according to the company’s web site. The real estate investment firm has eight other properties that it owns in the greater San Francisco Bay Area.
GID in many cases invests on behalf of major public pension funds. One of these is the Oregon Public Employees Retirement Fund. The pension fund had approved a new $250 million equity investment with GID in March of this year to expand an existing joint venture with the two firms. The ownership of any assets in the venture will be 90 percent to the pension fund and 10 percent to the manager.
The investment strategy for this capital was to invest in core apartments assets. Most of the capital will be invested in major markets along the East and West Coasts. There will be a total of six to 10 assets to be invested in with the new capital. The leverage amount planned for the new capital is 45 percent.