Multifamily Blog
Larger multifamily pricing
The downward trend continues on medium to large multifamily buildings with the 1st half of 2009 seeing a steep decrease in per unit pricing. I don’t see any strength in multifamily pricing currently and I feel a continued downward slide in pricing is highly likely through the rest of 2009. The current comparable look like this:
2305 Mcbride Ln 20 Units $1,905,000
1133 14th St 7 Units $872,000
200 S E St 9 Units $1,100,000
4005 Hoen Ave 8 Units $933,000
7123 Palm Ave 16 Units $1,875,000
791 E Cotati Ave 12 Units $1,385,000
18161 Happy Ln 43 Units $5,700,000
1241 Division St 9 Units $769,000
The average per unit price is $117,250 for the four county North Bay Market of Marin, Sonoma, Solano and Napa for multifamily medium to large Through 8/15/2009. Significant downward pressure exists as vacancy appears to be climbing and properties actively marketed for sale are languishing on the market.
Small Multifamily in Napa
June 2009 Multifamily Update
2136 Holmes Avenue 2 Units $246,000
1735 G Street 2 Units $315,000
AVERAGE PRICE PER UNIT (June) $140,250
July 2009 Multifamily Update
1161 Oak Ave 6 Units $954,000
1152 Sylvia 2 Units $264,000
1865 Yajome 2 Units $291,775
1624 E Street 4 Units $318,000
2000 Devonshire 2 Units $499,000
AVERAGE PRICE PER UNIT (July) $145,423
Jackson Square building sells for $6.2M
Jul 21, 2009 - San Francisco Business Times
Polatnick Properties has planted its flag in Jackson Square with the bargain-basement, $6.2 million acquisition of 731 Sansome St.
Polatnick paid about $165 a square foot for the 38,000-square-foot office building, less than half of what the historic 1911 structure would have traded for in 2007. The purchase was all cash.
“By buying cost effectively in a down market, we were able to purchase the building at half the price we might have paid 12 months ago,” said investor David Polatnick. “This will translate in being able to provide cost-effective rents to prospective tenants in the marketplace. Our team’s ability to close very quickly with an all-cash deal was attractive to the seller.”
The sellers were Leon and Carole Pierce, according to public records.
The property was extensively renovated in 1989. Improvements include the addition of two floors, fourth-floor roof decks with bridge views, and a high vaulted ceiling that floods the top floor with natural light. The brick building houses Skyline Construction offices and for years was occupied by the Rucker Fuller furniture company. From 1976 to 1986 it was the original headquarters of Dolby Electronics.
Polatnick said the building has “great potential.” Suites from 3,500 square feet and an 8,500-square-foot floor plate allow smaller tenants to have a full-floor identity. Updates to the lobby, façade, and tenant spaces are planned. He said the property is smaller than most of the buildings they go after, “but we like its bones and the historical aspects.”
The sale is further indication that property values in downtown San Francisco have reset to reflect recession-era economic realities. In late June, a private equity fund controlled by billionaire George Kaiser bought 250 Montgomery St. for $19.9 million, or $173 a square foot. The building had sold for $46 million in 2006. It was the first downtown office building to sell in nearly a year.
Polatnick, whose current or past investments include 99 Rhode Island St., 660 Third St., and 100 Pine St., said he has “a larger appetite and is looking for additional properties.” he said he and his investors are taking “the long view” of San Francisco office market.
“You have to be willing to wait out this downturn,” he said.
May 2009 Multifamily Update
363 Weber 2 Units $225,000
2714 Sacremento 2 Units $265,000
AVERAGE PRICE PER UNIT (MAY) $122,500
April 2009 Multifamily Update
2147 Mayfair 2 Units $285,000
2481 Pine 2 Units $335,000
AVERAGE PRICE PER UNIT (APRIL) $155,000
March 2009 Multifamily Update
2571 Aspen 2 Units $240,000
2034 Spencer 2 Units $357,250
1041 Pope 5 Units $675,000
AVERAGE PRICE PER UNIT (MARCH) $141,361
February 2009 Multifamily Update
No Sales
February was the 1st month in over a decade with no multifamily sales in Napa county. In addition we have seen a 30%+ collapse in duplex, triplex and fourplex Napa Valley pricing for 2009 compared to 2008. May saw the average unit price of Napa apartment buildings fall to $122,500 the lowest average unit price for duplex/triplex/fourplex in Napa since the mid 1990's. The month of January saw the unit price dip below $100,000 this was due to the sale of the nine unit Division street property in downtown Napa. Contact Mike Bolen with RE/MAX Marina Downtown the only agent specializing in multifamily property in Napa Valley. Mike Bolen can assist your analysis and search of both on and off market deals. You can reach Mike Bolen with RE/MAX Marina Downtown at 707-254-9999 or Mike@MikeBolen.com
January 2009 Multifamily Sales
309 Hickory Napa 2 Units $315,000
1241 Division Napa 9 Units $769,000
January Unit Price Average $98,545
The last time unit prices were recorded below $100,000 per unit was 1999. Unit price only tells half the story though. The real measure is rent to price ratio. Keep in mind unit prices are at 1999 levels although average rents are at 2009 levels, rents have never been higher is Napa then they are today.
I am strongly urging all my clients to only purchase multifamily with a holding period of 3 years or longer and only purchase properties that are cash flow positive or in selected areas that will compliment your existing portfolio. Opportunities to buy and flip investment properties in this market are difficult at best.
With that said opportunities to buy for rental income and long term appreciation have never been better than they are today. Both on and off market opportunities exist along with foreclosure and pre-foreclosure options.
Contact me via email or phone below anytime with multifamily questions or any questions related to real estate in our area. I have MLS auto email programs, for sale by owner searches and foreclosure reports and maps all available to you as a buyer client of mine just shoot me an email anytime.
Here at the RE/MAX Marina Downtown I Mike Bolen run the most productive RE/MAX team in Napa Valley. Our office is located in downtown Napa on the corner of 1st and Main. If you are buying or selling real estate in Napa Valley, homes, multifamily, land or commercial my team is the local expert. Just email or call anytime.
Email: Mike@MikeBolen.com or call 707-254-9999
I am going to jump right into reporting on the sale of multifamily real estate investment properties in Napa Valley for the time period September through December of 2008:
September 2008
1715 F Street Napa 2 Units $450,000
1701 F Street Napa 2 Units $480,000
September Unit Price Average $232,500
October 2008
2241 Louisa Street Napa 3 Units $473,900
1474 Sherwood Circle Napa 2 Units $582,500
October Unit Price Average $211,280
November 2008
933 Brown Street St. Helena 4 Units $772,000
November Unit Price Average $193,000
December 2008
1106 Berry Street Calistoga 3 Units $445,000
1711 Lincoln Napa 10 Units $1,070,000
December Unit Price Average $116,538
With such light sales volume one must be careful not to read too much into these numbers. Considering the very slow sales pace we can still observe a significant downward pressure on pricing and an undeniable trend from September through December of lower unit sale prices.
Prices have been hammered even further in 2009 in my next post I will cover January 2009 which has the lowest unit sales price I have ever reported for Napa Valley!
Contact me via email or phone below anytime with multifamily questions or any questions related to real estate in our area. I have MLS auto email programs, for sale by owner searches and foreclosure reports and maps all available to you as a buyer client of mine just shoot me an email anytime.
Here at the RE/MAX Napa Valley office RE/MAX Marina Downtown I Mike Bolen run the most productive RE/MAX team in Napa Valley. Our office is located in downtown Napa on the corner of 1st and Main. If you are buying or selling real estate in Napa Valley, homes, multifamily, land or commercial my team is the local expert. Just email or call anytime.
Email: Mike@MikeBolen.com or call 707-254-9999
Broad based declines in the prices of existing single-family homes across the United States continued into the second half of 2008, cementing a trend that prevailed throughout the first half of 2008, according to the recently released S&P/Case-Shiller Home Price Indices report.
"The downturn in residential real estate prices continued, with very few bright spots in the data," said David M. Blitzer, chairman of the Index Committee at Standard & Poor's. "For the fifth straight month, every region reported negative annual returns. This started when Charlotte, N.C., was the last region to turn negative back in April 2008. As seen throughout 2008, the Sun Belt markets are being hit the most. Phoenix and Las Vegas are both reporting annual declines in excess of 30 percent, and Miami, San Francisco, Los Angeles and San Diego are all in excess of 25 percent."
I am a real estate broker agent at the RE/MAX Napa Valley office RE/MAX Marina Downtown I specialize in working with buyers and sellers of multifamily apartment investments. Over 65% of our sold real estate deals are never advertised. Most are offered to sale only to buyers represented by our team. To gain access to the off market inventory or to learn how we work with buyers contact Mike Bolen for multifamily Mike@MikeBolen.com or 707-254-9999.
Read more here
RE/MAX Napa Valley
The city of Napa is now experiencing an apartment vacancy rate of 1.6 percent, which is fueling increased rents.
Just three years ago in 2005 the vacancy rate peaked at 5.6 percent. Last year in 2007, the vacancy rate was 2.6 percent. Population growth, credit tightening, surging foreclosures and lack of new construction of multifamily product in Napa Valley all contribute to the ultra low vacancy rate in 2008.
Now is the time for multifamily builders to enter the Napa Valley market and place new apartment product on the market. Currently at RE/MAX in Napa Valley I represent sellers of a combined total in excess of 16 acres of buildable multifamily ground. Most offered for sale off market to pre qualified buyers. To gain access to the off market Napa Valley multifamily market contact me today.
I am a real estate broker agent at the RE/MAX Napa Valley office RE/MAX Marina Downtown I specialize in working with buyers and sellers of multifamily apartment investments. My colleague Armando Lincoln 707-299-9779 part of the team handles all real estate commercial and residential that is not multifamily. Over 65% of our sold real estate deals are never advertised. Most are offered to sale only to buyers represented by our team. To gain access to the off market inventory or to learn how we work with buyers contact Mike Bolen for multifamily Mike@MikeBolen.com or 707-254-9999.
Essex Property Buys Santa Cruz Complex
The Silicon Valley / San Jose Business Journal
Essex Property Trust Inc. has bought the Chestnut Street Apartments in Santa Cruz for $22.1 million.
The 96-unit garden-style complex was built in 2002 and is located near the ocean and the University of California Santa Cruz. The property also has 9,000 square feet of retail and commercial space.
Palo Alto-based Essex (NYSE:ESS) acquires, develops, redevelops and manages apartments in California and the Seattle metropolitan area. The company owns nearly 27,000 apartment units in more than 130 communities. Nearly 6,700 of the units are in Northern California, including Silicon Valley; about 13,000 of the apartments are in Southern California.
