SAN FRANCISCO, CA - Ivanhoé Cambridge and Veritas Investments announced the acquisition of 16 multifamily properties in San Francisco, for approximately $200 million. The acquisition continues the execution of a residential property aggregation strategy in San Francisco via the firms' exclusive partnership created in 2014.
The partners now jointly own a total of 45 properties, averaging 30 residential housing units per building, including many with ground-floor retail facilities. All are located across San Francisco's most unique and desirable neighborhoods, such as Lower and Upper Nob Hill, Russian Hill, NOPA, Noe Valley, Duboce Triangle, Alamo Square, Mission Dolores and North Panhandle.
"Our multifamily platform strategy consists in investing in key cities such as San Francisco," said Sylvain Fortier, Executive Vice President and Chief Investment Officer, Ivanhoé Cambridge. "Veritas is an outstanding investment and managing partner, which plays a strategic role for us in understanding the market, knowing the long-term trends and identifying the right opportunities."
Yat-Pang Au, Founder and CEO of Veritas, added: "Our investment strategy continues to focus on owning and operating multifamily housing that will be in demand now and in the long term. The San Francisco Bay Area's ecosystem of technology and innovation companies, its university and education centers and its quality of life create a strong magnet for today's mobile workforce, which is ultimately our resident base."
The walkable infill neighborhoods of San Francisco, representing a range of housing options, are exhibiting the low vacancy rates and demographic factors that support long-term demand. While the San Francisco Bay Area has seen increased construction of commercial real estate, its development-constrained marketplace tends to favor local neighborhood character and existing properties.