The New York-based fund paid about $82 million, or roughly $625,000 per unit, for the 132-unit complex at 333 Main St., according to industry sources familiar with the transaction. The sale is potentially a high-water mark for the Peninsula apartment sales market, several brokers said.
Sares Regis, which owned the property with joint venture partner J.P. Morgan Asset Management, would not comment on the pricing, which was confirmed by two people outside the deal. But Chief Investment Officer Drew Hudacek said the strong interest in the property reflects a couple of factors including the area’s continued strong rental outlook and relatively few Class A apartment projects for sale.
“The business plan was always to create the asset, stabilize the asset, and sell it in perhaps two to three years,” Hudacek said. “The reality was, we realized the final disposition of the asset much earlier than we expected.”
The sale was arranged by Marcus & Millichap’s Institutional Property Advisors. Stan Jones, Phil Saglimbeni and Sal Saglimbeni were the brokers on the deal. They weren’t immediately available for comment. A representative of TIAA-CREF didn’t immediately return a call.
Sares Regis will continue to manage the project, which started leasing in January and is in the process of achieving LEED Silver certification, a notable achievement given that apartments have been slower to latch onto the green-building trend than office buildings.