PITTSBURG, CA—Atlanta-based multifamily brokerage firm ARA, has completed the sale of Los Prados, a 242-unit apartment complex located in Pittsburg. The property, built in 1985, is conveniently located near the Pittsburg/Bay Point BART station and Highway 4, which leads to regional employment centers throughout the Bay Area. Waterton Associates sold the property to McDowell Properties for $32,500,000, $134,298 per unit and $157 per square foot.

Rents at recently renovated properties in the immediate competitive set have consistently achieved measurable premiums over non-renovated units at Los Prados, lending strong support for the implementation of renovations by the new owner. The much higher rents being achieved in Walnut Creek and Concord, further support this strategy, ARA says.  Los Prados was 93% occupied at the time of sale.

“We are very pleased to complete the sale of Los Prados.  The asset was acquired in an older investment vehicle now in disposition mode and after a longer than anticipated hold period, we are very happy with the execution and outcome of the investment,” said Field Stern of Waterton Associates. Jake Gentling of McDowell Properties commented, “We are excited to expand our presence in the Bay Area with the purchase of Los Prados.  This acquisition is consistent with our strategy to acquire and reposition assets in dynamic locations across the country.  We plan on spending additional capital to improve the property's curb appeal while taking advantage of the positive, long-term apartment trends in the East Bay.”

The ARA Pacific team, led by San Francisco-based principal, Mark Leary, served as the exclusive advisors on the transaction. According to ARA's Leary, “One of the most compelling attributes of Los Prados is the evidence of an immediate renovation upside. Given the asset's quality of construction and favorable unit attributes, there is a value-add potential through cosmetic upgrades to the unit interiors in addition to enhancement of the community amenities.”

McDowell Properties focuses on the acquisition, management and repositioning of multifamily properties in growth markets throughout the United States. Founded in 1995, Waterton Associates LLC is a real estate investor and operator with a focus on U.S. multifamily properties. ARA focuses exclusively on the brokerage, financing and capital sourcing of multihousing properties.