Woodmont Pays $14MM for Apartment Complex in Mill Valley

Colliers, multifamily, Casa Roja Apartments, Mill Valley, Marin County, Red Island Real Estate, Woodmont Companies

Colliers, multifamily, Casa Roja Apartments, Mill Valley, Marin County, Red Island Real Estate, Woodmont Companies

By Jon Peterson

Belmont-based Woodmont Companies has paid $14 million to acquire the 38-unit Casa Roja Apartments in Mill Valley, according to sources familiar with the transaction.

[contextly_sidebar id=”n0aDGjgjyQJZoiLwr9taluL9rJw5vhqv”]Representatives of Woodmont declined to comment when contacted for this story. The company acquired the property for its own account.

The sales price of the property comes in at around $570 per square foot, which represents a new record for multi-family properties with no less than five units in Marin County. The asset was acquired on an all-cash basis.

The seller of the property was Sausalito-based Red Island Real Estate. The company had sold the asset through its list agent, the San Francisco office of Colliers International.

“There was a great deal of interest in the property. We even had a couple of real estate investment trusts who were interested in buying the property, even though the deal from a price perspective was on the small end. I think one of the attractions for this property was that the asset is located in a market with significant growth restrictions for new development,” says Ryan Wagner, a vice president with Colliers. He and Brad Lagomarsino and James Devincenti worked on the sale of Casa Roja for the seller.

The cap rate on this deal around four percent. This return is based on the current net operating income that the property is producing. Some of the units in the property will need to be renovated. “There are 16 units that are un-renovated. The work on these units will include a full renovation that includes new kitchens, painting and putting in new appliances. The cost on this will be $30,000 per unit,” said Wagner.

The property was first built in 1964. The apartment complex is now 95 percent occupied. The market in which it is located has occupancies ranging from 95 percent to 97 percent. “The apartment market in southern Marin County remains very tight as it has a very limited supply of properties,” said Wagner.

This market does offer much lower rents than San Francisco’s. “Rents in Mill Valley are somewhere in the range of $3.50 to $4.00 per square foot. This compares to the $5.00 per square foot for rents being attained in San Francisco,” said Wagner.

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