An apartment complex in downtown Oakland sold recently for over $60 million, significantly less than its assessed value just a year ago. The sale highlights a potential weakening trend in the East Bay residential market.
An apartment complex in downtown Oakland , just blocks away from Lake Merritt, was recently purchased for over $60 million, nearly half of its assessed value from a year ago. The multifamily residential property, located at 1889 Harrison St., was acquired by an affiliate led by The Martin Group for $61 million, according to documents filed on January 23 with the Alameda County Recorder's Office. The 224-unit, seven-story complex, built in 2019, had an assessed value of $115.
7 million as of January 2024. This means the purchase price was 47.3% below the Alameda County Assessor's Office estimated value. Assessed values go well beyond a simple survey of the local real estate market. Property value trends can significantly impact revenue for various public agencies. If real estate values decline in a jurisdiction, it could reduce a crucial revenue stream for city, county, and regional agencies, as well as school districts. The $61 million price for the building was also lower than a $70.8 million loan the selling group received in 2021 for the property, as indicated by county documents. MetLife Real Estate Lending provided that financing. Quarterra Multifamily, a spinoff of a Lennar Group subsidiary, headed the affiliate that sold the apartment building to The Martin Group, according to Alameda County real estate and Lennar regulatory filings.The Martin Group has a wealth of experience in the Bay Area multifamily residential market, including several properties in Oakland. Their portfolio, which includes the Harrison Street apartments, comprises at least seven apartment complexes in Oakland, a student housing property in Berkeley, and at least one apartment building in San Leandro, Alameda, Napa, and San Mateo, according to The Martin Group's website. Interestingly, a Quarterra Multifamily affiliate sold another large apartment complex at a nearby downtown Oakland location about a month earlier in December, also at a price suggesting weakening values. These two transactions are just two examples in what is becoming a challenging landscape for certain segments of the East Bay residential market. Recent foreclosures in Oakland further highlight this trend. The $90 million loan for a downtown Oakland apartment complex was deemed delinquent and the property was repossessed by its lender on August 28, 2024. Another Oakland property was acquired by a real estate firm that had purchased the property's loan and subsequently foreclosed on the financing vehicle on November 27, 2024
REAL ESTATE MARKET TRENDS OAKLAND APARTMENT COMPLEX ASSESSED VALUE FORECLOSURE
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