Orig Source www.bizjournals.com | Re-Post MNM Partners, LLC 6/16/2016
Barely a year after it opened, Greystar’s Franklin 299 apartments in Redwood City have sold for a healthy price tag to one of the country’s largest financial services firms.
TIAA Global Asset Management just paid $213 million, or roughly $700,000 per unit, for the 305-unit project at 299 Franklin St., according to public records. That appears to be a record in Redwood City, reflecting continued strong investor demand for multifamily rental assets even as market observers question how long the economy will hold out.
The luxury rental complex is one in a flurry of downtown Redwood City projects that has helped transform the formerly sleepy Peninsula city into an urban hub. The city’s downtown precise plan allowed up to 2,500 new units to be built in the district, and those are mostly spoken for, though not all built.
In emailed responses to questions, Mark Washington, director of western acquisitions for TIAA, said that the pickup fits the investor’s long-term strategy. “It offers a desirable location, high quality construction and amenities, and the market is in high demand with professional tenants in Redwood City, Palo Alto, Menlo Park, San Francisco and Silicon Valley,” he wrote.