Fremont, Calif., & Hayward, Calif., (July 15, 2022) – Levin Johnston of Marcus and Millichap, one of the top multifamily brokerage teams in the U.S., specializing in wealth management through commercial real estate investments, has successfully completed two East Bay Area transactions: the $20 million sale of The Storage Spot, a 645-unit storage facility in Fremont, California, and the $22.75 million sale of University Village, a 68-unit multifamily community in Hayward, California.
According to Levin Johnston’s Executive Managing Director Adam Levin, who represented the sellers in the transactions and procured the buyers, these transactions represent the firm’s ability to successfully execute deals within a variety of asset classes, allowing investors to diversify their portfolios and enjoy the benefits of stable, income-producing assets in premier metropolitan areas.
“There has been an influx of capital pouring into commercial real estate as investors look to hedge inflation by investing in asset classes that outperform the market during volatile climates,” says Levin. “Given this increased competition, it has become harder to pencil deals, especially in high-demand markets like the East Bay Area. By leveraging our deep market knowledge and strong industry relationships, we were able to successfully beat out the competition and execute these multifamily and self-storage deals, two of the most in demand asset classes, providing investors with inflation hedging assets that will offer strong returns for years to come.”
The Storage Spot in Fremont, CA
According to Adam Levin, 10.6% of households rent a self-storage facility, and the annual revenue of the self-storage industry is now valued at 39.5 billion. This trend is expected to continue to grow due to migration patterns spurred by the pandemic, coupled with evolving trends in housing.
“The long-term effects of the pandemic will further impact migration patterns across the country. As many Boomers retire, they will look to downsize due to the ballooning cost of housing, and storage units provide a convenient option for additional space,” says Levin. “Millennials are also increasingly utilizing self-storage as they deeply value mobility, and with the rising cost of housing, look to smaller apartment living in place of buying a home. These storage facilities provide users with the ability to hold onto their cherished items as they embrace new ways of living.”
In addition to the boom in self-storage, the Storage Spot’s premier location in the heart of the East Bay adds to its investment appeal.
“This self-storage facility is a well-situated asset due to its central location with excellent transportation corridors to major airports and freeways,” says Levin. “The building consists of 57,047 square feet and is built on a lot size of 2.86 acres. Additionally, the 645-unit property is already at 95% occupancy, and it is the only self-storage facility in central Fremont, adding to its pressing tenant demand and presenting a rare opportunity for investors to capitalize on its specialized and relevant services.”
The property is located at 38491 Fremont Boulevard, Fremont, California.
University Village in Hayward, CA
On the heels of the self-storage deal, the firm also completed the sale of University Village, a 68-unit multifamily community in Hayward, California.
“The property is situated at the entrance of California State University, East Bay, presenting a convenient and opportune living situation for many prospective student and faculty tenants,” says Levin. “Further investment appeal is driven by Hayward’s strong employment fundamentals, low vacancy levels and close proximity to major employers, transportation corridors, shopping, dining and entertainment options.”
The property also presents an opportunity for investors to maximize returns by implementing strategic value-add renovations.
“The value-add potential for University Village is immense, with the opportunity to add 20 ADUs to the complex. In addition, the large lot size also presents the opportunity to implement various community amenities, which will help create steady rent appreciation,” says Levin.
University Village is situated on a 2.37 parcel of land and has a gross building area of approximately 52,110 square feet. The property offers residents one-bedroom and two-bedroom floor plans, and many amenities including upgraded kitchens, stainless steel appliances, modern cabinetry, granite counter tops, vinyl plank flooring, several community rooms, 124 parking spaces, and a large auditorium that has the potential to be converted into extra units.
The property is located at 25400 Carlos Bee Blvd, Hayward, CA.
ABOUT LEVIN JOHNSTON
Levin Johnston Group is one of the top multifamily brokerage teams in the U.S. specializing in wealth management through multifamily and commercial real estate investments. With a focus on growing and sustaining wealth for each and every Client, the Levin Johnston team is expert in investment sales and acquisitions, value-driven asset management, 1031 exchanges, and ongoing advisory services. Since its inception, Levin Johnston Group has directed more than $2 Billion in transactions, resulting in stable risk-adjusted returns for investors throughout the U.S. Levin Johnston Group is part of Marcus & Millichap’s Palo Alto office.