221 Marin County apartments change hands in $188 million deal

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A large national investor in apartment real estate and a Napa-based commercial real estate developer has purchased 221 multifamily units in Marin County amid a rebound in rents and occupancy in outlying markets in the La San Francisco Bay.

A subsidiary of Bell Partners Inc. purchased the Tam Ridge Residences property at 195-205 Tamal Vista Blvd on December 2. to Corte Madera for a recorded price of $156 million, according to an announcement and public filings. That equates to nearly $867,000 per door.

Renamed Bell Mt. Tam, it was the Greensboro, North Carolina-based company’s second North Bay acquisition this year and its third in California, among the $4.8 billion in deals the company said it has concluded so far in 2021. Bell Mt. Tam would have was 92% occupied at time of sale.

And on Nov. 16, a subsidiary of Napa’s Channel Properties acquired the recently completed 815 B St. project at the northwest corner of Second and B Streets in downtown San Rafael for a registered value of $32.1 million. dollars, according to brokers and county records. . This price is equivalent to $783,600 per unit.

Completed in June, three-quarters of the apartments at 815 B St. were occupied at the time of the sale, but the nearly 2,000 square feet of retail space on the ground floor remains vacant, according to Newmark. Rents range from $3,100 to $3,900 per month for one-bedroom apartments, with an average of $3,500, two-bedroom units rent on average at $4,500, with a range of $4,100 to $5,000 for penthouse suites.

“They paid a pretty high price for the property and took on some rental risk,” Jay Cross, a member of Newmark’s brokerage team on the 815 B St. deal, told The Business Journal. “It should be noted that they just started renting in June and have been very successful in securing fairly high rents, even during the rental challenges through (the) COVID (pandemic). This is a testament to the strength of the tenant market.“

Last spring, when vaccines were just rolling out and pandemic restrictions were loosening further, apartment owners in much of the Bay Area were offering concessions to fill units, Cross said.

“Downtown San Francisco has been the hardest hit area in the country, with some landlords offering two to four months of concessions, which has had an effect on the rental of high-end properties in Marin and elsewhere,” said he declared. “San Francisco hasn’t fully recovered, but Marin and other areas of North Bay have. The farther a market is from San Francisco, the more attractive it is as a low-density location, it has quickly recovered and in some cases exceeded pre-COVID levels.

Despite a significant slowdown, national apartment rent growth is still above its pre-pandemic trend, according to real estate information service CoStar. But Marin’s occupancy rate had rebounded to 97% in December, and the lack of planned major new construction of multi-family properties bolsters the long-term outlook for Bay Area occupancy to stay above 95% over the next several years, according to CoStar.

Nickolay Bochilo, Bell’s executive vice president of investments, noted the Corte Madera property’s “highly desirable location in a limited supply area and modern apartment finishes.” The property is about a half-mile from the upscale outdoor Village mall in Corte Madera.

“The acquisition of Bell Mt. Tam reflects our focus on finding investments that offer compelling long-term fundamentals and opportunities to enhance and protect value through our operating platform,” Bochilo said in the release. hurry.

BCF I Tam Ridge LP has acquired the Corte Madera complex at 195-205 Tamal Vista Boulevard LLC, a subsidiary of the project developer, Macfarlane Partners Investment Management LLC of San Francisco, according to county records. Construction was completed in 2017.

The property has six buildings with one-, two-, and three-bedroom units and a half-acre park. It also has 3,100 square feet of retail space, anchored by an Andy’s Market grocery store.

With approximately 70,000 units under management, Bell claims to be one of the largest apartment operators and remodelers in the United States. In February, an affiliate acquired the 232-unit Windsor at Redwood Creek complex in Rohnert Park.

The developers of 815 B St. Monahan-Parker and Monahan-Pacific submitted their proposal for the project in 2013.

Newmark’s Haden Ongaro, Mark Leary and Rob Ledoux also brokered the San Rafael deal for vendor 1200 Second Street Investors Inc., a subsidiary of Monahan-Parker, and vendor Harvest Park Inc., a Channel subsidiary. Properties.

A real estate investment company of the owners of Channel Lumber, a major East Bay-based wholesaler, Channel Properties has developed The Riverfront, a landmark housing, office and retail project in downtown Napa along the Napa River which opened in 2008. The real estate company is currently working on a South Napa site to build a 100,000+ square foot warehouse and an adjacent 20,000 square foot warehouse.

Jeff Quackenbush covers wine, construction and real estate. Prior to The Business Journal, he wrote for Bay City News Service in San Francisco. He graduated from Walla Walla University. Contact him at jquackenbush@busjrnl.com or 707-521-4256.

Correction, December 14, 2021: The recorded value of 815 B St. was $32.1 million, not $31.1 million, due to an error in the calculation of the documentary transfer tax.

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