The trophy 1920s apartment building traded at $650,250 per unit.
SAN FRANCISCO, Nov. 16, 2012 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the all-cash sale of 2299 Pacific Ave., a trophy 1920s apartment building located in San Francisco’s Pacific Heights neighborhood. The 16-unit asset commanded $10.5 million, or $650,250 per unit—one of the highest prices per unit achieved in the city so far this year.
James Devincenti, a senior vice president investments, and Brad Lagomarsino, a vice president investments in Marcus & Millichap’s San Francisco office, represented the seller, the Henry I. Prien Family Trust. The buyer was a high net-worth individual representing two family trusts, which acquired the asset as-is, closing escrow in two weeks.
“A rarely marketed asset, this trophy apartment building had been owned by the same family for more than 46 years,” says Devincenti. “With our unique marketing plan capitalizing on the asset’s trophy appeal, we were able to attract more than 10 qualified offers from a wide array of investors,” he notes. “Because of the high demand for quality infill assets in prime neighborhoods, we were able to close this transaction at a cap rate of 3.25 percent and a GRM of 17.55.”
“The property’s immaculate condition, large units with fireplaces and views of the Golden Gate Bridge and its design by renowned architect, Conrad Alfred Meussdorfer, further enhance its appeal and the long-term intrinsic value of this property,” Devincenti adds.
Built in 1928, 2299 Pacific Ave. is a nine-story, concrete and steel apartment building. It has a gold copper leaf composite ceiling and an attractive tile entryway with a fountain that grace its lobby, and the beautifully maintained building boasts many newer systems and many recent capital improvements.
The building is comprised of one studio/one bath unit (425 square feet), 12 one-bedroom/one-bath units (1,135 square feet), one two-level, two-bedroom, two-bath units (1,560 square feet), one two-level, three-bedroom, two-bath unit (approximately 1,830 square feet) and one office (600 square feet).
2299 Pacific Ave. is situated on the corner of Pacific and Webster streets in the heart of San Francisco’s prestigious Pacific Height’s neighborhood, convenient to many shops, restaurants and parks.
With more than 1,000 investment professionals in offices nationwide, Marcus & Millichap Real Estate Investment Services is the largest firm specializing in commercial real estate investment services in the nation. Marcus & Millichap closed 5,085 transactions in 2011, the highest of any commercial real estate brokerage firm. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology and relationships with the largest pool of qualified investors nationally.