Record Off-Market Multi-Family Transaction in Benicia Valued at $11.9MM

Waterstone Terrace, Bay Area, San Francisco, Benicia, Colliers International,

Waterstone Terrace, Bay Area, San Francisco, Benicia, Colliers International

Exchange Sale Underscores Multi-Family Investors’ Flight to Quality Properties

BENICIA, CA – June 12, 2017 — Waterstone Terrace, a 60-unit multi-family community in the highly-desirable town of Benicia, has been sold in a 1031 Exchange transaction negotiated by Colliers International. Value of the investment sale was $11.9 million.

Colliers Senior Vice President Brandon Geraldo, who specializes in multi-family investment properties from the firm’s San Francisco office, along with Ryan Wagner and Ryan Rodriguez, negotiated the complex, off-market exchange transaction. They represented both the buyer, Riaz Inc., and the seller, Milestone Properties, both headquartered in Oakland. The sale of Waterstone Terrace represents the largest transaction in Benicia in the last 12 years.

“Not only does this transaction underscore the continuing demand for multi-family properties in the Bay Area, but throughout the state, as post-Great Recession barriers to homeownership, especially among prospective first-time home buyers, have forced many to rent longer than then in past eras,” Geraldo said. “Likewise, on the investment side of the equation, never before have we seen such high demand for quality, well-located, multi-family product. The real challenge is in the supply/demand imbalance. Simply put, investor demand continues to outstrip supply and will continue to do so for the foreseeable future.”

Located at 522 West K Street near the Benicia waterfront retail district, the asset was built in 1971 and is in the midst of a $1.25 million renovation. The community offers a mix of 1, 2 and 3-bedroom flats and townhome-type floor plans, many occupied by families who would otherwise have been home owners in the pre-Great Recession Era, noted Geraldo. But with banks and mortgage financing institutions requiring near-perfect credit, 20% down payments and three months’ income in savings, many Millennial-aged prospective home owners cannot qualify for a mortgage.

“It’s a double-edged sword,” said Geraldo. “While the American Dream is still alive and well and desired by most in that prime home buying age group, the reality of the situation has forced them to re-think and delay home ownership, which is a benefit to multi-family investors. That’s why demand for apartment communities in safe neighborhoods with good schools is now so important and in such short supply.” Benicia is a prime example of the phenomena – safe neighborhoods and great schools.

Colliers’ Geraldo, Wagner and Rodriguez are currently marketing, or have under contract, over $100 million in San Francisco Bay Area multifamily transactions and continue to be leaders in the market.

West Coast Commercial Real Estate News