Apartment Rents and Prices Moderating in Most of Marin County
San Rafael—With the rise in interest rates and flattening of apartment rents, apartment building prices are starting to moderate in Marin County in 2018.
In the 5+ unit category we have 10 recorded sales since January 1, with the majority located in San Rafael. Those prices per unit have been from $250,000-$367,000. The higher price per unit reflects remodeled units with current market rents. The lower end price per unit is for buildings in need of updating with below market rents.
Closed Marin County Apartments 5+ Units
| Address | Price | # Units | P Point | COE |
|---|---|---|---|---|
| 1400 Lincoln, San Rafael | $2,750,000 | 11 | $250,000 | 6/5/18 |
| 124 Merrydale, San Rafael | $16,900,000 | 46 | $367,000 | 1/26/18 |
| 101 Piner Court, Fairfax | $7,800,000 | 27 | $288,000 | 1/30/18 |
| 1052 Redwood Hwy, Mill Valley | $6,356,000 | 30 | $254,000 | 1/26/18 |
| 55 Roque Moraes, Mill Valley | $5,000,000 | 6 | $833,000 | 5/14/18 |
| 45 Reed Blvd., Mill Valley | $4,275,000 | 10 | $427,500 | 3/6/18 |
| 22 Tamalpais, San Anselmo | $2,585,000 | 6 | $430,000 | 2/9/18 |
| 1356 Lincoln, San Rafael | $2,080,000 | 8 | $260,000 | 4/20/18 |
| 55 Park Road, Fairfax | $1,675,000 | 5 | $335,000 | 1/24/18 |
| 142 Willow, Corte Madera | $1,575,000 | 5 | $315,000 | 5/8/18 |
The Southern Marin apartment sales prices run from $427,000 per unit to a high of $833,000 per unit for a smaller, six unit property with Mt. Tam views and extensively upgraded units. Several off market properties sold, with one 5 unit building at 142 Willow in Corte Madera recording at a sales price of $1,575,000 in May, 2018.
There are currently just two apartment properties on the Multiple Listing Service and both are located in Mill Valley. Despite their great locations the GRM’s are over 20 times rents and investors have not been rushing to acquire these over priced properties.
I expect to see continuing softening in pricing and seller concessions in the third and fourth quarter of 2018.