Apartment Investors Return to Marin Apartment Market
San Rafael – After six months of few sales, Marin County apartment investors are back in the market and scooping up discounted properties. In July and August we have seen a tripling of apartment transactions, with many going into escrow starting with the July 4th holiday.
For example, in San Rafael a 9 unit apartment property, converted from office use to rental units, went into escrow after 117 days on the market. The property, offered at $3,875,000 after going through two price reductions, ended up at a 13.2 gross multiplier.
In Mill Valley, a totally renovated six units with covered parking and Mt. Tam views and offered at $3,200,000, went into escrow in early July. The property was purchased in 2018 for $5,000,000 and the seller’s loan had adjusted compressing cash flow. Multiple offers were received on this outstanding buying opportunity.
After 100 days on the market, a beautiful six unit Sausalito property with spectacular Bay views went into escrow in July. Offered at $4,500,000, the property included large flats with hardwood floors, separate dining rooms and nicely upgraded units. The offering gross rent multiplier was 17.46, a typical GRM for a Southern Marin bay view property.
Another unique five unit property, a house with small cottages on over an acre in the San Rafael’s Los Ranchitos neighborhood, went into escrow and attracted five offers on a property priced at $2,400,000.
With interest ratings dropping on 5+ units to under 6%, from the high 7’s in 2023, Marin apartment investors are jumping back into the market while sellers are more motivated to sell.
Now is the time to get started on your search for a new apartment investment. Rents are expected to climb again in 2025 and 2026, according to the Rental Housing Market news. Rental demand is increasing as home buyers are being priced out of the low inventory housing market.