Press Release: Phoenix Realty Group and Intercontinental Real Estate Corporation Acquire 544-unit Multifamily Property in East Bay Area
HAYWARD, Calif. – Feb. 8, 2016 – The Bridge, a 544-unit multifamily property located in Hayward, California, has been purchased by a joint venture of Phoenix Realty Group (PRG), a national real estate owner, operator and fund manager headquartered in New York City, and Boston-based Intercontinental Real Estate Corporation, a national real estate investment, development and management firm. Located at 25800 Industrial Blvd., The Bridge consists of 29 two- and three-story buildings and is situated on a 22-acre site. Plans for the property, which was completed in 1986, include the implementation of a value-add repositioning effort to modernize the outdoor living spaces for residents and bring high-level finishes to the units.
“The Bridge benefits from a highly sought after long-term rental pool and strong employment market, with excellent access to major metros, including San Francisco, Silicon Valley and Oakland,” said Alex Saunders, managing director of PRG’s acquisitions group. “In addition, improved market conditions, coupled with limited land availability for future construction, make this a great opportunity for PRG to invest in a high barrier-to-entry market.”
Centrally located between downtown San Francisco, Silicon Valley and downtown Oakland, in the fifth largest metropolitan area in the country, the property is situated in close proximity to two Bay Area Rapid Transit (BART) stations and the San Mateo Bridge, which connect the property to the San Francisco peninsula. According to Axiometrics, within a 40 minute commute from The Bridge are a variety of employment centers, comprising more than 3.2 million jobs in industries including high-tech, healthcare, education and electronics. The submarket is supply-constrained, with no new rental units completed since 2014. Vacancy levels are tight and forecasted to become even tighter through 2020, as the area continues to add jobs at a projected rate of approximately 110,000 jobs per year.
The Bridge includes one-bedroom and two-bedroom units, which feature private patios and balconies, storage units as well as washer/dryers in select units. Amenities of the property include resort-style swimming pools and spas, a newly constructed clubhouse, fitness center and business center, a children’s play area as well as picnic and barbeque areas.
“We’ve established a program based on competitive investment strategies, which is proven through our continued relationship with Intercontinental,” said Keith Rosenthal, president of PRG. “The Bridge is a primary example of our Class B, high barrier-to-entry market focus, allowing us to further expand our presence in the Bay Area and California and invest in a property type which we understand and do well with. We have no doubt that, with the planned improvements, we’ll be able to reach renters within the region who are looking for upscale amenities and contemporary unit interiors at a better value than newly constructed communities.”
The new ownership will implement a value-add improvement program to enhance the property’s marketing appeal, provide Class A-style amenities and incorporate improved, attractive finishes and features in units.
“With The Bridge’s appealing mix of upscale amenities along with its proximity to major employment hubs in the Bay Area, this asset provides a key opportunity for us to meet the needs of the rental community by providing quality housing at competitive rents.” said Jessica Levin, Director, Acquisitions and member of Intercontinental’s Investment Committee.
The joint venture will retain PRG’s strategic partner and affiliate, ConAm Management, as property manager, which currently manages more than 50,000 units nationwide.
John McCulloch, ARA, A Newmark Company represented the buyer and undisclosed seller in the transaction. Trevor Fase of Walker & Dunlop arranged a loan assumption and supplemental loan for the acquisition.
PRG continues to actively invest in multifamily properties on the East Coast, West Coast and the Mountain States.
Intercontinental Real Estate Corporation is an SEC Registered Investment Adviser with decades long experience in real estate investment, finance, development, construction management and asset management. Since 1959, Intercontinental has managed, developed, or owned over $10 billion in real estate property. Today, Intercontinental manages a portfolio in excess of $4 billion for its clients. The Intercontinental portfolio is diversified both by robust property mix and by geography. Fund strategies actively seek opportunities to invest in both Core and Core-Plus properties, as well as in Value-Add operating properties and development projects. Visit www.intercontinental.net for more information.
About Phoenix Realty Group
Phoenix Realty Group (www.phoenixrg.com) is a national real estate owner and operator providing capital and expertise for the development and operation of rental and for-sale residential properties, low-income tax-credit housing, and mixed-use and commercial projects in urban areas across the United States. PRG currently manages $1.5 billion in assets and 11,000 apartment units across the nation. PRG principals have invested in more than 1,000 multifamily properties representing approximately 130,000 apartment units and $12 billion in real estate over 30+ years.