One of the nine properties in the JV's initial portfolio.

SAN FRANCISCO—Montreal-based Ivanhoé Cambridge in a partnership with locally based Veritas Investments Inc. plans to acquire multiresidential properties in San Francisco. An initial portfolio has been assembled, comprising nine properties already acquired or that are in the process of being acquired, representing a preliminary investment of nearly $50 million.

This new partnership provides access to numerous investment opportunities with a high potential for value creation in various neighborhoods in the heart of San Francisco. “The multiresidential market in San Francisco being highly fragmented, we are convinced that Veritas, with its deep market knowledge, will help us build a critical mass of assets in some of the city’s key districts,” says Sylvain Fortier, EVP of residential, hotels and real estate investment funds, at Ivanhoé Cambridge. “Veritas has demonstrated the fundamental qualities we were looking for to enter this market, namely diversified real estate experience, crucial local expertise and a strong commitment to quality assets.”

Yat-Pang Au, founder and CEO of Veritas, says that “We are pleased to count on the experience and depth of an established investor such as Ivanhoé Cambridge, which shares our vision and will help put our expertise to use. This partnership will give us the capacity to make numerous transactions, targeted renovations, reposition certain assets and realize the full potential of their value.”

The initial portfolio consists of 159 residential units in nine buildings located in various central San Francisco neighborhoods, including Lower Nob Hill, Noe Valley, Inner Mission, Alamo Square, Duboce Triangle, Westwood Park, Mission Dolores and Cow Hollow. The expansion and relocation by major technology companies continue to draw the interest of large numbers of employees wishing to live in the heart of San Francisco, creating a favorable environment for the multifamily rental market. The vacancy rate is low, and demographic factors support long-term demand.