February 26, 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 two property sales totaling $23.45 million in the East Bay Area of San Francisco, California.
The properties include a 40,852 square-foot retail center in Hayward, California, and a 34-unit apartment community in San Leandro, California.
“We anticipate continued robust activity in the East Bay’s multifamily and retail markets due in part to increasing job growth in Alameda and Contra Costa counties,” explains Adam Levin, Senior Managing Director of Levin Johnston. “Consumer confidence is strong and economic fundamentals are healthy there, which bodes well for the retail sector. In addition, apartment demand continues to outpace supply in this submarket, making East Bay multifamily a particularly attractive asset class.”
The transactions include:
- $12.95 Million Acquisition of Stratford Village Retail Center
Levin Johnston of Marcus & Millichap arranged the acquisition of a retail center in Hayward, California for $12.95 million. Adam Levin, Robert Johnston and Eymon Binesh represented the private buyer in the transaction.
“East Bay’s retail sector finished 2008 with its lowest-ever overall recorded vacancy rate at 4.2%,” says Robert Johnston, Senior Managing Director of Levin Johnston. “The outlook on this market is positive, with strong occupancy and rental rates in new and high-quality assets.”
Johnston adds that this property was meticulously maintained by its original developer since its construction, which augmented its appeal. “The buyer sold two multifamily properties to exchange into this property and significantly increased their cash flow,” says Johnston.
Stratford Village Retail Center is a 100% leased, high-profile, asset with a strong credit-tenant roster that includes Starbucks, Subway, Fremont Bank, Straw Hat Pizza, DaVita Inc., Select Staffing, CosmoProf, and Manheim, Inc. A majority of the tenants have significant tenure at the property, and lease rates are below market value, creating upside for the buyer.
Originally constructed in 2003 and 2004, Stratford Village Retail Center provides convenient parking and is well located, with tremendous frontage on Industrial Parkway West. The center offers strong access to Oakland, Silicon Valley, San Francisco, and Palo Alto via I-880.
The property is situated in a dynamic, underserved location at 1641-1645 Industrial Parkway West in Hayward, California.
- $10.5 Million Sale/Acquisition of The Maubert Apartments
Levin Johnston also directed the sale of a 34-unit apartment community in San Leandro, California. Adam Levin and Robert Johnston represented the buyer and the seller, both local apartment owners in the Bay Area.
“This transaction demonstrates continued strength in the East Bay multifamily investment market,” says Levin. “Driven by excellent employment fundamentals and low vacancy in San Francisco, the East Bay continues to attract renters from throughout the region.”
Levin also notes that the City of San Leandro has emerged as a hub for technology and economic growth.
“Since July 2017, more than $113 million in construction projects have been permitted in the region, including the Marina Gateway Center, San Leandro Tech campus and Westlake Urban’s San Leandro Business Center, among others,” Levin explains. “This asset delivers a tremendous opportunity for growth in equity as capital investment in the region increases.”
Situated on an expansive parcel totaling 1.38 acres, the property is centrally located, giving residents easy access to employment opportunities throughout the Bay Area via Interstates 580 and 880, two San Leandro BART stations, and several area bridges. The asset is also in close proximity to high-tech companies such as Facebook, Google, and Tesla, among others.
The Maubert Apartments is a garden-style apartment community comprised of four buildings that offer a mix of two-bedroom, two-bathroom and one-bedroom, one-bathroom flats. Amenities include a gated and secured entryway, private balconies, assigned covered parking, and on-site laundry.
The property is located at 15977 Maubert Avenue in San Leandro, California.
In 2018, Levin Johnston of Marcus and Millichap successfully directed 55 transactions totaling over $700 million in the Bay Area market.