Silicon Valley Multifamily Group closes sale of 33-unit apartment building on The Island of Alameda
December 10, 2015
LOS GATOS, Calif. – Silicon Valley Multifamily Group announced today that it has closed the sale of Bayview Apartments, a 33-unit, two-story apartment building on the Island of Alameda.
Silicon Valley Multifamily Group (SVMG) marketed the asset on behalf of the seller, Holmes Business LLC of Fremont, Calif. SVMG also procured the buyer, Sridhar Equities of San Jose, Calif. to purchase the property. The property sold for $6.1M, or $184,848 per door, and a 4.0% cap rate on current income.
The property was constructed in 1959 as a motor lodge but was converted to multifamily apartments at some point later. It has been operated as a multifamily property for at least the last 30 years. The property was sold as a value-added opportunity due to the overall condition of the units and the property. The new owner intends to renovate the units, the building façade and the common area to bring it to modern day rental standards. In so doing, the property will increase in value, bring more jobs to Alameda, and more revenue in the form of building permit fees, construction jobs and higher disposable income to the Island of Alameda.
Michael Shields, CCIM and Managing Director for Silicon Valley Multifamily Group, represented both the buyer and seller of the property. “This is a great opportunity for the
Island of Alameda to begin upgrading its older rental stock, especially on the West End of Alameda,” says Shields. “There is very high demand for quality rental units, and this project will supply Alameda with yet more product to appeal to modern day renters.”
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