April 3, 2020— Levin Johnston of Marcus and Millichap, one of the top multifamily brokerage teams in the U.S. specializing in wealth management through commercial real estate investments, recently sold two multifamily assets in the Bay Area: Leigh Court, an 18-unit multifamily community in San Jose, California and 1 Devonshire, a 15-unit multifamily property in the San Francisco Peninsula submarket of San Carlos, California.
With these sales, the brokerage team facilitated a strategic 1031 exchange on behalf of the investor who sold Leigh Court and acquired 1 Devonshire, according to Levin Johnston’s Executive Managing Director Adam Levin and Senior Managing Director Robert Johnston – who were both recently recognized by CoStar Group, Inc. as Power Broker Award recipients.
“Demonstrating the strength of the irreplaceable San Jose location, we were able to quickly source a buyer for Leigh Court who met the seller’s price requirement,” explains Levin. “The seller of the asset was then looking to acquire another Bay Area property that would offer immediate strong cashflow and growth potential with less hands-on management required.”
According to Johnston, the team recognized that the 1 Devonshire community, which had previously been marketed unsuccessfully by other brokers, would be an ideal asset for the investor to trade into as part of their 1031 exchange.
“We were able to procure the investor we worked with to sell Leigh Court as the buyer of the San Carlos community, which had recently undergone strategic interior and exterior improvements to increase its value,” Johnston continues. “The buyer in this transaction recognized the long-term potential in 1 Devonshire, and we were ultimately able to satisfy both parties’ investment objectives.”
San Carlos is located in the heart of San Francisco Bay Area and is known for its high quality of living. Situated near the nation’s top tech employers and lively community, 1 Devonshire is a trophy asset that will attract Peninsula renters for years to come, notes Levin.
Levin adds: “1031 exchanges are a tried-and-true method for investors looking to build and achieve wealth in the real estate market – we are consistently identifying opportunities for our clients to expand their portfolios for long-term wealth.”
The 18-unit multifamily property is located at 1235 Leigh Avenue in San Jose, California and sold for a total price of $5.75 million. Originally constructed in 1963, the property offers beautifully designed studio, one-, and two-bedroom floorplans.
The 15-unit multifamily property is located at 1 Devonshire Boulevard in San Carlos, California and sold for a total price of $8.43 million. Originally constructed in 1965, 1 Devonshire offers renters a mix of studio, one and two-bedroom floor plans. The property recently underwent significant exterior and interior renovations which include modern bathroom and vanity light fixtures, new custom interior paint, hardwood flooring, in-unit washers and dryers, dual pane windows, and updated kitchens.