Marin County Apartment Market Seeing Record Prices for Complexes in 2014

San Rafael – The Marin County apartment market continues to see apartment building prices climb in the first quarter with investors chasing continuing high returns in the multifamily investment market.

Many sellers have not kept up with the recent spike in rents and investors have closed on some buildings with as much as a 30% upside on rents.

Here are examples of recent Southern Marin apartment sales with high gross rent multipliers that do not reflect the upside on rents:

  • 216 Miller Avenue, Mill Valley, 18 units  |  $6,425,000  |  356k per unit  |  16.1 GRM
  • 14 Gomez Way, Mill Valley, 4 units  |  $ 1,600,000 $400k per unit  |  18.3 GRM (below market rents)
  • 20 Harbor Oak, Tiburon, 6 units  |  $4,050,000  |  $675k per unit  |  17.5 GRM (below market rents)
    (This property had 1,500 sq. foot flats with Bay views, fireplaces and near downtown)

In Central Marin sales are now approaching $285,000 per unit, for example:

  • 109 Professional Center Parkway, San Rafael, 20 units  |  $3,575,000  |  $178k per unit
  • 255 Channing Way, San Rafael, 14 units  |  $3,010,000  |  $215k per unit
  • 22 Belle Avenue, San Anselmo, 7 units  |  $2,000,000  |  $285k per unit  |  15.1 GRM
    (This property is located in downtown San Anselmo)

Inventory is still way down with less than 3 or 4 properties at a time on the market. Many have received multiple offers soon after  hitting the market.

If you are thinking of selling I would advise that you raise rents prior to listing your property to get the best price.  I have worked with many sellers that were behind on rent raises and there are strategies that can be used to get rents up or even deliver the property with a few vacant units so that the new owner can raise rents themselves.

If you are thinking of selling or exchanging this year there could not be a better time. There are many more buyers than sellers right now and inventory is scarce.

Please give me a call at 415-302-7730 to discuss or email me at katherine@khiggins.com.

Yours very truly,
Katherine J. Higgins
Investment Broker Associate