Carmel Scoops Up 3,000 Bay Area Apartments in $1B Deal
Westlake Village portfolio in Daly City sold by G. Baker Properties.
In what cumulatively may turn out to be the largest CRE deal this year in the Bay Area, Carmel Partners has acquired the Westlake Village Apartments, encompassing 3,000 units in Daly City, in a series of transactions with G. Baker Properties totaling more than $1B.
The total price for the Daly City portfolio—which was acquired in six separate transactions—represents the combined value of $675M in cash Carmel paid for the properties and a $349M loan the company secured from Wells Fargo to finance the acquisitions, according to a report in SiliconValley.com.
San Francisco-based Carmel also is absorbing three outstanding loans on the properties totaling $250M, the report said.
Westlake Village Apartments is a coastal community spread out over 47 acres in six campuses that include apartments, cottages and townhomes that offer “suburban lifestyle with urban access,” according to a description of the portfolio on apartments.com.
The campuses are in proximity to the historic Westlake Shopping Center and two golf courses in the area, the Lake Merced Golf Club and the Olympic Club.
The apartment complexes are located at 333 South Park Plaza Drive; 220 Lake Merced Boulevard; 10 Forest Grove Drive; 111 South Mayfair Avenue; 27 Northgate Avenue; 35 Eastmoor Avenue; and 28 Terrace View Court.
Built in 1948, Westlake Shopping Center was one of the first shopping malls built the US. The shopping center is anchored by Home Depot and includes Ross, Safeway, Target and Walgreens outlets.
In June, an affiliate of Kimco Realty, which bought Westlake Shopping Center in 2002, filed plans to build a 214-unit apartment complex in a vacant Burlington Coat Factory outlet at the shopping center.
Kimco Westlake, based in Daly City, proposes to demolish the Burlington store and replace it with a seven-story complex at 99 Southgate Ave., according to a report in SF Yimby.
The apartment building would include 11K of ground-floor retail, restaurants and a pharmacy. A parking garage would be fitted into the first and second floors below the apartments, the report said.
The project will include two landscaped courtyards on the second floor above the shops, surrounded by apartments in a U-shaped complex. A rooftop sky deck and lounge on top of the apartment building will offer views of Lake Merced and Twin Peaks, while outdoor dining space will be created on a landscaped walkway.