Landmark Multifamily Property Hits Market for First Time

(Mark Your Calendars: RealShare REAL ESTATE 2012, March 22^nd in Los Angeles).

SAN FRANCISCO-Stephen Pugh, managing director in the San Francisco office of APR Investment Group, tells GlobeSt.com that the Grosvenor Suites at 899 Pine St. is up for sale. He tells GlobeSt.com that this is the first time the 205-unit property—owned by Grosvenor Properties and Carmel Partners—has ever been offered to the market.

According to Pugh, the ownership believes is it an opportune time to market the property and allow the “very active resale market to determine the ultimate sales price.” He adds that “the asset continues to operate at a high occupancy due to its premier location near the top of Nob Hill and its ability to attract short-term and long-term tenants.”

When asked a ballpark of what the property might fetch, Pugh says “probably over $70 million.” He also points out that the offering has already attracted all types of investors including local, national and international investor groups and REITs.

The multifamily property consists of a 19-story, 200+ unit residential building. The property was built in 1962 and consists of studios, one bedrooms and a top floor penthouse. The building also includes 87 individual parking spaces and is in close proximity to Union Square.

According to Pugh, “the opportunity to acquire a multifamily asset of this scale and location is unprecedented in San Francisco. The greatest opportunity of this offering from a future value perspective is the ability to vacate over 90% of the units,” he says.

He explains that a new owner can restructure and create their own vision for the property. “In rent controlled San Francisco this freedom empowers the investor/new owner to immediately take advantage of establishing market rents which are currently soaring upward.”