Invesco Pays $99.6MM to Buy Mason Flats Apartment Complex in Pleasanton

Invesco Real Estate, Township Square, Pleasanton, Resmark, Palo Alto, Institutional Property Advisors, Tralee Village Apartments, Zumper

By Jon Peterson

Atlanta-based Invesco Real Estate has paid $99.6 million or $474,000 per unit to acquire the 210-unit Mason Flats at Township Square apartment complex in Pleasanton, according to sources familiar with the transaction. The property is located at 1605 Lexington Lane.

Invesco declined to comment when contacted for this story.

This is a very new property, which was completed at the end of 2016. The seller of the property is Los Angeles-based Resmark.

The previous owners of the property had hired Palo Alto-based Institutional Property Advisors on the sale. Sal Saglimbeni, senior managing director of investments for IPA, was responsible for working on the transaction. Neither the seller or listing agent would comment on who the buyer is, what was the sales price or the cap rate.

There was very strong interest in the sale of this property with a deep list of potential buyers. “I probably did 30 separate tours of the property when it was on the market for sale. Most of the interest was from core buyers like pension fund managers and REITs,” said Saglimbeni.

The property was approximately 88 percent occupied at the time of the sale. The asset is now fully stabilized. The complex has a mixture of one, two and three-bedroom units, as stated on the property’s web site. Some of the shared amenities in the complex include a fitness center, gourmet kitchen, pool, spa, barbeque and bocce ball court. The renter audience for this project includes a mixture of people that would work for professional service companies and technology workers.

The apartment market in Pleasanton is currently a very tight market with strong demographics. “The area is known as one with a diverse and growing employment base. The location of the property is very strong with good schools and is near a major shopping center than has a Safeway and CVS drug store,” said Saglimbeni.

As home ownership in the Bay Area continues to be out of reach for many families, apartments have continued to attract interest from investors across the nation and the globe. Suburban submarkets with connectivity to transportation or proximity to employment centers have continued to do well and attract investor interest. Another recent transaction in the region saw the Tralee Village Apartments, a Class A apartment community built in 2011 in Dublin trade hands in October of 2017. B Matteson, Inc., a San Mateo-based private real estate investment manager, purchased the 130-unit luxury apartment community from PCCP for $55 million, or $423,076 per unit.

The Pleasanton apartment market has seen an increase in rental pricing year-over-year, according to data by apartment research firm Zumper. Across the board, one-bedroom units in Pleasanton go for $2,170 per month, while a two-bedroom unit can be rented for $2,650, on average. The two-bedroom pricing has increased 3.1 percent from a year earlier, while the one-bedroom rental price has grown more modestly 0.5 percent from the year before.

West Coast Commercial Real Estate News