September 16, 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 acquisition of a newly renovated office in Redwood City, California, along with the sale of an apartment community in Mountain View, California, for a total transaction volume of $28.6 million.
Levin Johnston represented a single client as the buyer in the Redwood City office transaction and as the seller in the Mountain View sale—part of a successful 1031 exchange directed by Executive Managing Director Adam Levin and Senior Managing Director Robert Johnston.
“With this exchange, we were able to both secure a competitive price for the multifamily asset, as well as help diversify our client’s portfolio by identifying a high-yielding office building in the desirable Redwood City market, which will create long-term wealth and stability for years to come,” explains Levin. “These transactions demonstrate our capabilities to go beyond a transactional mindset and serve as wealth and investment advisors for our clients.”
The 1031 exchange began with the $22.5 million sale of Woodgate Apartments, a 34-unit multifamily community in Mountain View, and concluded with the $6.1 million acquisition of 558 Brewster, a newly renovated, single-tenant office building totaling 5,580 square feet in Redwood City.
“A unique investment opportunity in a top-performing market, 558 Brewster is a perfect fit for an experienced investor looking to expand their portfolio,” says Johnston. “The demand for quality office product is at an all-time high. Future job growth in Redwood City is projected to be 37 percent over the next 10 years, surpassing the U.S. average of 33.5 percent.”
The area benefits from its proximity to Silicon Valley, attracting major tech companies including Apple, Inc., Tesla, Yahoo, and Microsoft, among many others.
“The investment appeal of 558 Brewster is driven by Redwood City’s core downtown location, strong employment fundamentals, and low vacancy levels, as well as its close proximity to major employers and transportation corridors,” Levin adds.
Originally constructed in 1981 and renovated earlier this year, 558 Brewster includes two floors of office space. Situated in a prime corner office location of Brewster Avenue and Winslow Street, the property is in walking distance to a Caltrain station and downtown Redwood City. The asset also features ample on-site parking, a carport, storage areas, and high-quality kitchen facilities.
Located at 1950 Montecito Avenue in Mountain View, California, Woodgate Apartments is in close proximity to Highway 85 and Highway 101, offering direct access to the entire Bay Area. Originally constructed in 1976, the property offers studios, one- and two-bedroom apartments, as well as laundry facilities and covered parking.