HAYWARD, CA - 29th Street Capital (29SC), a privately-held real estate investment and advisory firm, has acquired a two-property, 69-unit apartment portfolio in Hayward, California. The new owner plans $855,000 worth of renovations for Plaza Verde Apartments (44 units) and Eden Apartments (25 units) to significantly upgrade the interiors and to enhance the exteriors of each property.
“This is the 10th acquisition we have made in the East Bay of San Francisco in under two and a half years, with an 11th property in Hayward under contract for purchase, closing in January,” said Casey Davis, 29SC’s Vice President of Acquisitions for California.
Eden Apartments is located in increasingly popular downtown Hayward, while Plaza Verde is approximately one mile away in a more residential area. “Hayward is a short 25 mile commute to San Francisco by nearby San Mateo Bridge and I-880 or the nearby BART station, both providing convenient options for quickly getting around the Bay Area,” Davis added.
Strong job creation in San Francisco, Oakland and Silicon Valley has created significant demand and a ripple effect that has created a tight rental market throughout the East Bay, as limited housing supply hasn’t kept up with increases in demand. Hayward, the sixth largest city in the East Bay, home to 150,000 residents, provides affordable rental housing options for workers and families.
29SC purchased the assets through an off-market sale and at a 23% discount to comparable, current sale prices from an owner who has operated the assets for over two decades and decided to liquidate and comfortably retire. The transaction provides 29SC the opportunity to immediately cure any deferred maintenance and to invest an average of more than $12,000 per unit. The renovation budget at Plaza Verde will be used to increase curb appeal through a modern paint scheme, landscaping upgrades and new windows. 29SC will also upgrade cabinets and countertops, flooring, as well as remodel the bathrooms.
The renovation budget for Eden Apartments will also be used to improve curb appeal through fresh paint, window replacements and basic repairs. The interiors will receive a complete redesign and upgrade.
The address of Plaza Verde Apartments is 550 Berry Avenue; the address of Eden Apartments is 1201 B Street, both in Hayward, Cal., 94541. The transaction closed December 17. The price was not disclosed.
29th Street Capital has acquired 12 multifamily assets during 2015 in markets including Houston, Tex., Denver, Colo., Durham, N.C. and Phoenix, Ariz. It is also actively pursuing additional opportunities throughout the U.S. The firm will continue to target smaller value-add deals, which are below the institutional radar, with the intention of offering its investors above market returns.
Formed in 2009, 29SC is a privately-held real estate investment and advisory firm that employs a value-added investment strategy on properties that are below the radar of institutional peers. 29SC’s current portfolio consists of 5,851 units and it has acquired over 6,867 units in 10 markets across the United States. Investments typically require approximately $2 to $10 million of equity per deal, and involve the acquisition or recapitalization of real estate assets, portfolios or platforms. Learn more about 29SC at www.29thstreetcapital.com. For investment inquiries, contact: Stan Beraznik, Founder and Managing Principal at 29th Street Capital at 415.643.6875 or sberaznik@29thstreetcapital.com.