San Rafael – Marin County apartment properties were snapped up by both local and out of area investors in 2015 with most properties selling with in just weeks of coming on the market. Demand was so strong for apartments that more than a half dozen transactions took place off the market with prices as high as $12,700,000.
Many buyers were locked in to 1031 exchanges as they rolled over profits from smaller buildings in to larger properties with more income. In one instance, I helped a Silicon Valley exchange buyer purchase an 8 unit apartment building in downtown San Anselmo from a local investor for $2,600,000. The seller paid just $800,000 for the building in 1998. The property never even made it to the market.
As always, the most desirable building locations commanded the highest prices and multiple offers. Many of the four unit buildings that came on the market received multiple offers and closed at over the asking price. Gross rent multipliers ranged from 11 to over 18 GRM for the better locations throughout Marin County.
Even the larger, more expensive properties offered for sale in 2015 received multiple offers. A seven unit building in Sausalito with small one bedroom units and no parking received multiple offers and closed at $4,300,000 or $614,000 per unit-a record per unit price for Marin County.
I expect to see more of the same strong buyer demand for apartment properties in Marin in 2016 as interest rates remain low and investors search for long term yields.
If you wish to discuss real estate market conditions in Marin County please contact me at 415-302-7730 or email me at katherine@khiggins.com. I am a broker associate at Bradley Commercial Real Estate, Inc. in San Rafael and the market leader in Marin County apartment sales for the past 30 years.