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1/21/15
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Casa Roja Apartments, a 38-unit multifamily property in the Marin County city of Mill Valley, was purchased by NoCal-based Woodmont Companies. Built in 1964, the property is located at 396 Pine Hill Rd, just north of Shoreline Hwy.
We’re told that the sale worked out to $570/sf, which would be a new record, based on price paid per square foot, for a multifamily asset in Marin County. Although the actual price was not given out, a multifamily pro in the area we spoke to estimates the property traded for somewhere near $14 mil, which divides out to $368k/unit.
Casa Roja Apartments was extensively renovated over the last 18 months. The property boasts a large central pool terrace, laundry facilities, and some of the most elegant interiors of any rental product in the region. It’s located just 10 minutes from the Golden Gate Bridge in southern Marin County, and tenants benefit from one of the best school districts in the entire state.
The in-place cap rate was in the low 4 percent range, according to Colliers Vice President Ryan Wagner who, along with the firm’s Brad Lagomarsino and James Devincenti, represented the seller, Sausalito-based Red Island Real Estate LLC.
“This property generated tremendous interest from private and institutional investors, which just reinforces the demand for premium multi-family properties in the Bay Area and, specifically, in Marin County,” said Wagner. “There is a dearth of multi-family product in Marin County, with home prices simply out of the reach for so many, demand for the few Class A apartments in this area has dramatically jumped over the past few years and this is the perfect example.”
Red Island specializes in acquiring what it terms “irreplaceable assets” in the Bay Area and then embarking on a program of improvements and renovations to bring them up to Class A standards, which is what it was in the process of doing when it sold this property. The company has received awards from Los Gatos, Mountain View and Belmont for its design and community improvement. The new buyer plans to continue to improve the property.
Renovations completed to date have been comprehensive and have included such major changes as all new flooring, new windows, roof replacement, the reconstruction of all common area hallways, a new entry, plaster coating on all common area walls and ceilings, new heating and air conditioning units and new kitchens and bathrooms. According to Wagner, tenants in Mill Valley and Southern Marin are accustomed to paying rents that are commensurate with San Francisco pricing, approaching $4 per square foot.
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