SANTA ROSA, Calif., Jan. 23, 2019 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Parkwood Apartments, a 56-unit, garden-style multifamily property in Santa Rosa, California, according to Ramon Kochavi, regional manager of the firm’s San Francisco office. The complex sold for $15 million, which equates to just under $268,000 per unit.
Marcus & Millichap’s Vincent Schwab, senior managing director investments, and John Garrett, senior associate, were the exclusive listing agents for the seller, L.E.E. & J. Inc., and procured the purchaser, Burbank Housing Development Corp.
“Parkwood came on the market in the summer of 2018, just as the investment market for Santa Rosa apartments ground to a halt due to the threat of a local rent control ballot measure, the anti-price gouging law triggered by the wildfires, and fear of Proposition 10 repealing the Costa–Hawkins Rental Housing Act,” commented Kochavi. “Nevertheless, Vince and John identified a set of attributes at Parkwood that made it an ideal acquisition target for affordable housing providers. Once it was clear that market-rate buyers would not be competitive due to the market pressures, Vince and John focused their marketing efforts on affordable housing providers. Through their strategic marketing efforts, they found the best buyer for the property, created a bidding environment, and outperformed both the market and the seller’s expectations by selling Parkwood Apartments for $125,000 more than the original asking price.”
A spokesperson for L.E.E. & J. commented: “We were excited when Vince and John sourced the offer from Burbank Housing to purchase Parkwood Apartments. We have always respected Burbank’s contributions to the community and knew that our tenants, many of whom have called Parkwood home for decades, would be in good hands. The sales process, while significantly longer than a sale to a market-rate buyer would have been, was seamless and Burbank was great to work with.”
The property is on a private cul-de-sac adjacent to Rincon Valley Community Park. Sonoma County’s best public high school, Maria Carrillo High School, is within walking distance, an Oliver’s Market-anchored neighborhood shopping center is a half-mile away and a Safeway-anchored neighborhood shopping center is within 1.5 miles.
“Parkwood Apartments now provides the Santa Rosa rental community with a much-needed and exceedingly rare necessity: affordable housing in a great neighborhood near an excellent school,” concluded Garrett.
About Marcus & Millichap
With over 1,800 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed nearly 9,000 transactions in 2017 with a value of approximately $42.2 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit:www.MarcusMillichap.com