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3/15/19
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San Francisco based Reliant Group Management has acquired a multifamily portfolio consisting of seven properties in six Bay Area cities, for $116 mil. The purchase totals 603 apartment units ($192.4k/unit) with a combined 478.3k sf of space, located in Napa, Vallejo, Hercules, Antioch, Dublin and Hayward.
Reliant, one of the nation’s largest owners and operators of affordable housing, will convert four of the properties (369 units) to affordable housing, utilizing bonds and low income housing tax credits. It is estimated that Reliant Group Management will invest $40k per unit in upgrading these communities.
Three of the properties (234 units) will continue to be maintained as workforce housing and will also receive extensive interior and exterior renovations. Reliant has retained a significant number of personnel from the former owner, reducing employment dislocation.
Richard Knutson, CCIM, Anthony Pappageorge, Zach LeBeouf and Will Thomas with Newmark Knight Frank advised on the sale. Kathy Knutson served as leader of the support team. The seller was an undisclosed private company.
According to Knutson, “Portfolio deals of this size and scope are historically complicated when they involve just two or three properties. However, when you are dealing with seven assets in four separate counties, it’s both extremely intricate and rare. Our team represented the seller under an exclusive listing agreement and initially procured ten purchase proposals.”
Reliant Group Management President Joe Sherman noted, “At a time when affordable housing is in extremely short supply in the Bay Area, we are able to preserve and protect hundreds of units of affordable housing with this portfolio purchase.” A robust level of social services will be provided by Rainbow Housing Assistance Corporation, a non-profit that serves over 100 low-income communities nationwide.
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