Apartment complexes across the greater Bay Area region have been well over the last couple of years, and interest to acquire properties across a broad spectrum of investors continues unabated. In a recent transaction that closed on March 30th, Palo Alto-based Pacific Urban Investors sold the 108-unit Hayden Apartments in Martinez for $41.5 million, or just around $384,259 per unit. The buyer was an entity associated with Los Angeles-based Benedict Canyon Equities, according to public records.
Pacific Urban had owned the asset since November of 2019, when the firm paid $30.3 million for it. The roughly two-and-a-half-year ownership generated a 37 percent return on the property.
The Hayden is located at 486 Morello Ave. in Martinez, and it is a property that features a mix of one and two-bedroom apartments that are 550 square feet to 1,030 square feet in size. Based on the property’s webpage on Apartments.com, there are no vacancies in the property at this time.
The complex has been renovated recently, the property sits on a five-acre suburban site adjacent to a wooded area and a creek. The apartments feature balconies and patios, granite countertops, wood-style flooring, new carpet and window treatments, deep under-mount sinks and all-new stainless steel appliances, according to the property’s website. Some other amenities include a pool, spa, clubhouse, dog park and on-site laundry facilities.
Benedict Canyon is a fully integrated multifamily investment platform that invests in select markets throughout the Western U.S., according to the company’s website. The company’s investment focus is on acquiring opportunities where the company can unlock value through property rehabilitation, repositioning, asset management and creative recapitalization. It focuses on urban-infill multifamily residential real estate, principally in Coastal California and select markets throughout the Western U.S. and Pacific Northwest.
Benedict Canyon seeks investments in the $20 million to $45 million range, which is a selective niche that is out of reach of small investors and usually not on the radar of REITs, pension funds and larger investment institutions, according to the firm.
The City of Martinez has seen some recent apartment community sales over the last year or so, according to previous reporting by The Registry. San Diego-based MG Properties spent $67.3 million, or roughly $400,300 per unit, in November of 2021 to purchase a 168-unit Maris at Martinez, formerly known as Terra Martinez property.
In January of 2021, Fairfield purchased a 168-unit multifamily property in Martinez called Hidden Creek Apartments for $47.5 million, or $282,738 per unit. This sale highlighted the appeal of the East Bay city to investors looking for multifamily assets that have a strong geographic presence in the region.
“Martinez is the county seat of Contra Costa County and is also proximate to other employment, retail and entertainment centers in Walnut Creek, Concord, Pleasant Hill and additional inner-ring San Francisco Bay Area cities,” said IPA senior director Salvatore Saglimbeni at the time of the Hidden Creek Apartment sale. “The immediate area surrounding Hidden Creek is highlighted by strong demographics, including a historical average annual household income of more than $120,000 within a one-mile radius.”