San Rafael – Central Marin County apartment building prices per unit climbed above $300,000 for the first time in the second and third quarter of 2014 and are now averaging $317,000-328,000 per unit in the best locations in San Anselmo and San Rafael.

The high per unit prices are so far confined to four unit properties but a recent restored Victorian five plex came to market at $315,000 per unit with an asking price of $1,575,000. The sellers purchased the property in 2013 as a distress sale and completed more than $300,000 in improvements and raised rents that reflect the fine finishes and great location of well-located Gerstle Park property.

In Corte Madera, a two story fixer Victorian recently sold for $1,270,000 with multiple offers and below market rents. The property rental upside was about 40% at the time of sale in October. Another October closing was a four unit fixer at 328 D Street, San Rafael in the popular Gerstle Park neighborhood. The unit mix was two 2 bedroom units and two one bedroom units. Rents at time of sale were $1,295-$1700 with rental upside of about 30%. Current market rents in Gerstle Park are $1,700 for a one bedroom and two bedrooms starting at $1,900 per month.

In downtown San Anselmo a four unit property (a triplex plus small house on a single lot) sold for $1, 315,000 or $328,750 per unit with significant rental upside. The new owner intends to remodel the small home sitting at the rear of the property, once renting for $2,000 per month, and re rent the home for $3,750 per month.

Tremendous upside opportunities are available in smaller (2-6 units) apartment properties in central Marin County right now. With a little searching and knowledge of the current market rents a buyer can make significant equity gains and increased cash flow with this size property.

Call our office at 415-302-7730 for rental updates and a discussion of your real estate portfolio needs.

Regards,

Katherine J. Higgins
Broker Associate/Investments

Our latest sales and offerings:

Just Sold

  • 328 D Street, San Rafael
    4 units for $1,300,000
  • 1504 Vallejo, Novato
    4 units for $850,000
  • 23 Fairfax, San Rafael
    4 units for $840,000

Just Listed

  • 608 C Street, San Rafael
    5 unit remodeled Victorian
    Asking: $1,575,000

Available

  • 835 Sir Francis Drake Blvd, San Anselmo
    4 large units with covered parking
    Asking: $1,354,000