Ballast continues to expand its San Francisco apartment portfolio with the acquisition of three historic multifamily buildings totaling 110 units for $48.5 million, according to a press release shared with Multifamily Dive.
The six-story properties, known as the “Three Sisters,” sit along the Van Ness corridor on the border of San Francisco’s Pacific Heights neighborhood and are 97% occupied. The buildings feature a mix of spacious studio, one- and two-bedroom residences, along with two ground-floor commercial retail spaces.
The portfolio, built in 1928, features grand lobby spaces, elevator service, laundry facilities, access to a large shared courtyard and proximity to restaurants, shops, public transportation, Lafayette Park and Alta Plaza Park, per the release.
Mari Yamato, vice president of acquisitions at Ballast, said the properties offered a combination of institutional quality, neighborhood prestige and genuine historical character. “Three adjacent, impeccably maintained historic buildings of this scale and architectural pedigree simply don't come to market in Pacific Heights," Yamato said in the release.
Dan McGue of Coldwell Banker Commercial represented the private investor groups who sold the properties. In an interview last year with Multifamily Dive, Ballast Co-Founder and CEO Greg MacDonald pointed to a lack of supply as one of the drivers for strong growth in the market.
“All the development that would have occurred was really choked off because of COVID. The fact that the city had that major lockdown and its reputation took a hit across the country really just choked off supply,” MacDonald said. “So, if you look at the supply picture in the city over the next two to three years, it’s really incredibly favorable.”
As supply slowed, occupancy hit 95%-96% across the city a year ago, according to MacDonald. “That’s really when rents rise,” he said. “There’s just no available stock.”
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