We’ve got two multifamily trades totaling just under $18 mil to report from the Bay Area. The transactions were for a 15-unit property in Palo Alto and a 16-unit asset in San Mateo.
In one of the deals, Hawthorne Apartments, a 15-unit property located at 325-327 Hawthorne Ave in Palo Alto, was purchased by a 1031 exchange buyer for $10.15 mil, or $677k/unit. The property, located just two blocks from Downtown Palo Alto, consists of 15 units across two contiguous parcels totaling approximately 20k sf.
Originally constructed in 1956, the property offers approximately 9,665 square feet of building area with well-designed one-bedroom floor plans. The asset is also situated near Stanford University, Stanford Shopping Center, Caltrain access, and many of the nation’s leading technology employers, including Google, Apple, Meta, Amazon, Oracle, Visa, and SAP. The property benefits from select units secured by a five-year corporate lease, providing additional income stability for ownership.
225 Catalpa St, San Mateo |
 |
|
The other transaction was for 225 Catalpa St, a 16-unit apartment community located just blocks from Downtown San Mateo that sold for $7.75 mil ($484.4k/unit). Originally constructed in 1965, the property spans approximately 21.9k sf on a 13.2k sf parcel and offers a desirable mix of two-bedroom, one-bedroom, and studio floor plans.
The property recently underwent extensive capital improvements, including a voluntary steel soft-story seismic retrofit, a new roof completed in 2023, double-pane windows throughout, and an infilled pool area presenting potential future ADU opportunities. Residents benefit from convenient access to Downtown San Mateo, Caltrain, Highway 101, State Route 92, and major employers including Google, Meta, Visa, Sony, Stanford, and Box.
Executive Managing Director Adam Levin and Executive Managing Director Robert Johnston with Levin Johnston represented the sellers in both deals. They also procured the buyer in the San Mateo sale.
According to a recent report from Marcus & Millichap, Silicon Valley markets including Mountain View, Palo Alto, Los Altos, and North Sunnyvale recorded near-3% vacancy rates in late 2025, with year-over-year rent growth exceeding 6%. Continued wealth creation across the technology sector, including emerging opportunities tied to AI, is expected to support ongoing investor interest in high-quality real estate assets throughout the Peninsula. The San Mateo-Burlingame submarket continues to demonstrate the resilience of well-located, well-maintained, and upgraded vintage assets, with Class B and C vacancy rates remaining below 4% in late 2025.
|
Printer-friendly Version
Email an Associate
Return to the previous page
