San Francisco Business Times
J.K. Dineen, Reporter and Blanca Torres, Reporter
Friday, November 16, 2012
A Pac Heights apartment building has fetched the highest price per unit so far this year in the San Francisco Bay Area.
A high-net-worth individual representing two family trusts shelled out $10.5 million cash for 2299 Pacific Ave., a 1920s apartment building in San Francisco’s Pacific Heights area. The price tag of the 16-unit building comes out to $650,250 per unit.
James Devincenti, senior vice president of investments, and Brad Lagomarsino, vice president of investments in Marcus & Millichap’s San Francisco office, represented the seller, the Henry I. Prien Family Trust. The buyer acquired the asset as-is, closing escrow in two weeks. The property brought 10 offers.
“A rarely marketed asset, this trophy apartment building had been owned by the same family for more than 46 years,” says Devincenti. “Because of high demand for quality infill assets in prime neighborhoods, we were able to close this transaction at a cap rate of 3.25 percent and a (gross rent multiplier) of 17.55.”
Designed by Conrad Alfred Meussdorfer, the nine-story concrete and steel building has large units, fireplaces and views of the Golden Gate Bridge. It has gold copper leaf composite ceilings and a fountain in the lobby. The building contains units ranging from studios to three-bedrooms, from 425 to 1,830 square feet, and one 600-square-foot office.