San Francisco, CA – A partnership between L5 Investments and Equity Consultants Real Estate has acquired Creekside Village, an 88-unit senior housing community in Pittsburgh, CA, a city within the East Bay submarket of San Francisco. Built in 2003, the non rent-controlled property was acquired for $11.35 million (approximately $129,000 per unit) and was fully occupied at the close of escrow.
The partnership plans to add value to the asset in order to bring rents up to market rates by embarking on a $600,000 renovation strategy. Some of the major improvements include remodeling the leasing center, upgrading interior units, and improving landscaping and other exterior areas, in addition to improving operational functions in order to better cater to the needs of its senior residents.
“We believe Pittsburgh is an ideal Bay Area location for apartment investment due to lack of affordability within downtown San Francisco and other high demand East Bay markets – especially for 55-plus age-restricted communities,” said Michael Flaherty, founder and managing partner of L5 Investments, a Northern California-based multifamily investment firm.
“In addition to the value-add play, Creekside Village provided a number of attractive benefits as it is on the same street as a new BART station, and the property is one of just two age-restricted properties in the area.”
Flaherty added: “From an overall industry perspective, the United States continues to experience significant demand for rental units as the economy stabilizes and grows. With that said, the greater San Francisco area – inclusive of the East Bay submarket – has experienced some of the largest rental rate increases in the country. Because of these trends, L5 and our partners will be aggressively seeking to acquire additional multifamily and other age-restricted properties in key Bay Area submarkets over the next two to three years.”
Creekside Village is situated on 6.22 acres and is located at 30 Castlewood Drive near Kirker Pass and Railroad Avenue. The property includes five, two-story buildings and a unit mix of 82 one-bedroom units and six two-bedroom units. The community amenities include a leasing office, clubhouse with lounge area, swimming pool and spa, and outdoor grilling areas.
The seller, Lark Creek, LLC was represented by Rich Martini and Bill Hillis of Colliers International. Grandbridge Capital provided the debt.
About L5 Investments
Founded in 2009, L5 Real Estate Investments, LLC (DBA L5 Investments) is a privately held investment firm focused on value-add, income-producing multifamily properties in emerging U.S. markets. The firm currently has in excess of $118 million of assets under management in seven states. The company targets opportunities that provide high-yield, passive cash flow and long-term capital appreciation for its investors through strategic acquisition, renovation, and superior asset management. With over 50 years of real estate experience, L5 and its partners continue to capitalize on opportunities to own multifamily properties in premier locations. These properties generate attractive short-term income and long-term wealth potential. L5’s success and reputation has been built on its track record, conservatism, passion, attention to detail and the belief that trust starts and ends with honesty and integrity. L5 is based in the Sacramento area. www.L5invest.com.