29th Street Capital Acquires 11th East Bay Multifamily Property
Deal is Firm’s Fifth Recent Hayward, Cal. Deal
Hayward, Cal. (Feb. 1, 2016) – 29th Street Capital (29SC), a privately-held real estate investment and advisory firm, has acquired Blossom Manor Apartments, a 58-unit multifamily community in the supply-constrained city of Hayward, California. This marks 29SC’s fifth acquisition in Hayward and 11th overall in the East Bay since 2013. 29SC plans to strategically invest $750,000 in capital improvements to significantly upgrade the interiors and to enhance the exterior of property.
Blossom Manor Apartments is located in a residential area approximately one mile away from increasingly popular downtown Hayward.
“Hayward has such a central location within the Bay Area that it allows residents to commute to San Francisco, Silicon Valley and other parts of the East Bay with relative ease,” said Casey Davis, 29SC’s Vice President of Acquisitions. “The San Mateo Bridge, BART and the multiple freeways allow Hayward to attract residents looking for a reprieve from the escalating rents elsewhere in the Bay area. For a value-add company that primarily focuses on workforce housing, Hayward is an attractive market for us,” Davis added.
Strong job creation in San Francisco, Oakland and Silicon Valley has created significant demand and a ripple effect that has created a tight rental market throughout the East Bay, where limited housing supply hasn’t kept up with increased demand. Hayward, the sixth largest city in the East Bay and home to 150,000 residents, provides affordable housing options for workers and families.
29SC purchased the asset through an off-market sale at a discount to comparable sale prices. The seller had owned the building for nearly 30 years. The transaction provides 29SC the opportunity to immediately cure any deferred maintenance and to invest an average of nearly $13,000 per unit. The renovation budget at Blossom Manor Apartments will be used to increase curb appeal through strategic exterior improvements. Inside the units, 29SC will replace old cabinets, install new countertops, update the flooring and revamp the bathrooms.
The address of Blossom Manor Apartments is 763 Blossom Way, Hayward, Cal. 94541. The transaction closed January 27. The price was not disclosed.
29th Street Capital acquired 12 multifamily assets during 2015 in markets including Houston, Tex., Denver, Colo., Durham, N.C. and Phoenix, Ariz. 29SC is also actively pursuing additional opportunities throughout the U.S. The firm will continue to target smaller value-add deals, which are below the institutional radar, with the intention of offering its investors above market returns.
Formed in 2009, 29SC is a privately-held real estate investment and advisory firm that employs a value-added investment strategy on properties that are below the radar of institutional peers. 29SC’s current portfolio consists of 5,861 units, and it has acquired over 6,925 units in 10 markets across the United States. Investments typically require approximately $2 to $10 million of equity per deal, and involve the acquisition or recapitalization of real estate assets, portfolios or platforms. Learn more about 29SC at www.29thstreetcapital.com.