May 15, 2019— 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, has successfully directed the $25.5 million sale of Pacific Gardens, a 38-unit townhouse-style apartment community, situated in the highly-desirable city of San Mateo, California. Levin Johnston represented both the buyer and the seller in the transaction.
This transaction represented a rare opportunity to acquire a trophy asset in one of the strongest and most robust rental markets in the country, according to Adam Levin, Executive Managing Director, and Robert Johnston, Senior Managing Director of Levin Johnston.
“San Mateo’s strong market fundamentals are largely driven by the region’s rapid employment growth, which is quickly outpacing new housing deliveries throughout the area,” explains Levin. “In fact, over the last three years, nearly 100,000 news jobs were added to the San Mateo and Santa Clara counties, yet those markets only saw nearly 14,000 new apartments units in that same period. This is driving down vacancy rates and placing upwards pressure on rents.”
Constructed in 1993, Pacific Gardens is located within the center of this growth and is surrounded by a growing number of major employers including some of the nation’s top tech giants, which makes it an attractive asset to investors.
“Oracle, Sony, Visa, and GoPro are all located within five miles of the property with Facebook just over 11 miles from the community,” says Levin. “These major employers, coupled with the ongoing migration of tech companies and startups to the region will drive long-term resident demand to the property.”
The apartment community is also located near several public transportation hubs that provide direct access to the Bay Area’s top destinations, as well as a variety of retail, dining and entertainment options.
“San Mateo’s thriving downtown, which is a cultural and entertainment epicenter for the Peninsula, is within walking distance from the property and boasts more than 150 restaurants/bars and nearly 100 shops,” says Johnston. “Additionally, less than a mile from the property, a 12.5-acre parcel of the Hillsdale Shopping Center is being redeveloped into an entertainment destination equipped with an open-air dining terrace with several new restaurants and an 870-seat Cinepolis luxury theater.”
According to Johnston, these features add to the appeal of the property as today’s renters continue to demand more walkable communities that contribute to that 18-hour live/work/play lifestyle.
Pacific Gardens is located at 25 McAker Court in San Mateo, California. Community amenities include large two-story townhouse units with two-bedroom and two-and-a-half bathrooms as well as in-unit washers and dryers, private patios, in-unit fireplace, underground parking and individual storage.