60-Unit Apartment Building in Inner Bay Sells for $250,000 per Unit
November 01, 2023
SAN FRANCISCO – Transwestern Real Estate Services (TRS) announces that it brokered the sale of Summerhill Place Apartments, a 60-unit apartment building in Union City, California, for $15 million. Shivu Srinivasan, Senior Director at Transwestern, brokered the transaction between the undisclosed seller and Interstate Equities Corporation.
“We received significant interest in Summerhill Place Apartments, with multiple offers at full price,” said Srinivasan. “The interest was well warranted, as the property presents a terrific opportunity for the new owner, with the acquisition price of $250,000 per unit in the Inner Bay representing a very appealing basis.”
Located at 3900 Horner St. in Union City, Summerhill Place was built in 1986 and acquired by the private seller in 1993. The unit mix splits almost evenly between two-bedroom and single-bedroom apartments, and amenities include ample parking, onsite laundry, and pool facilities. The property is well situated, with plentiful nearby retail and dining, and the San Mateo Bridge, Dunbarton Bridge, Silicon Valley, and San Francisco International Airport, all within a short drive.
“We were able to land on an in-place cap rate of sub-4% on the transaction, which is very rare in this market with interest rates hovering in the mid-6% range,” Srinivasan continued. “The cap rate is indicative of the significant upside potential of Summerhill Place, as well as Transwestern’s ability to land strong pricing for its clients.”
According to research from Transwestern, as of the close of the third quarter of 2023, the multifamily vacancy rate in Union City was 3.9%, notably tighter than the broader East Bay average of 5.4%. Additionally, the market’s average effective rent per unit is $2,212, which is more affordable than the average East Bay rent of $2,618.
About Interstate Equities Corporation
Interstate Equities is a vertically integrated real estate investment and management firm in California. Our approach is analytical, requiring studied examination. We thoughtfully refine then systematically execute to deliver target returns. To us, integrity is essential. Our niche is finding dated multifamily apartment properties and transforming them into affordable, updated, boutique-style assets. We are uniquely positioned in our markets, having neighborhood-level expertise that we’ve gained from 146 asset realizations since 1981. Our operations are unified and entirely in-house, from investments and construction to leasing and property management. We are hands-on at every step. For more information, please visit https://www.interstateequities.com.
About Transwestern Real Estate Services
Part of the Transwestern companies, Transwestern Real Estate Services (TRS) strives to add value for investors, owners and occupiers across all commercial property types. Fueled by a holistic perspective of the real estate life cycle, agility and creativity are hallmarks of our approach, while vast national resources and sound market intelligence underpin customized recommendations and property solutions.
Five dynamic, integrated companies make up the Transwestern enterprise, giving us the perspective to think broadly, deeply and creatively about commercial real estate. Clients and investors rely on us for expertise that spans institutional and opportunistic investment, development, hospitality, and brokerage and asset services. Our award-winning, collaborative culture empowers team members with resources and independence to work across boundaries in pursuit of innovative solutions, reinforcing a reputation for service excellence that translates to measurable results. Through offices nationwide and alliance partners around the globe, we positively impact the built environment and our communities while fostering a work climate that champions career vitality for all. Learn more at transwestern.com and @Transwestern.