ALAMENDA, CA – Calvera Partners, a real estate investment firm, has bought 430 & 450 Buena Vista Avenue, a 52-unit apartment building in Alameda, CA, for $15.95 million. The final acquisition for their current discretionary investment fund, the buy is part of the firm’s ongoing commitment to the repositioning of vintage multifamily properties in the Bay Area. 

The three-tale building, constructed in 1964, will be rebranded with new signage, refreshed landscaping and common areas, and will include comprehensive upgrades to individual units. The property renovation will also address deferred maintenance issues and structural improvements.

“This property represents an brilliant fit with our investment strategy,” said Calvera Managing Principal Brian Chuck. “Our goal is to identify well-located properties with untapped value that can be realized via our creative repositioning and disciplined management.”

Alameda is a family-friendly community known for its recreational beaches and proximity to major employment centers. The property is close to downtown Oakland (2.5 miles) and San Francisco (20-minute ferry ride) and offers convenient access to other East Bay cities via Interstate 880 and BART, both of which are within a few miles of the property. Moreover, the property is within walking distance of one of Alameda’s main thoroughfares with neighborhood restaurants and retail. In addition, the immediate neighborhood has seen significant institutional apartment investment in the last 18 months. It is also near the 1,500-acre Alameda Point Development, one of the largest development projects in the Bay Area, which includes 673 housing units, funding for a new ferry terminal, and 93,000 square feet of retail. 

Chuck added, “Physically the building is in excellent condition for its age, and will allow the Calvera team to focus on their signature approach to a boutique hotel design aesthetic and branding.” 

Past projects for the real estate investment company have included The Stacks, located near San Jose State and FIT Apartments in Minneapolis, MN.

“As with all of our acquisitions, we feel like we can place our creative stamp on the building and renovate units as they turn over to realize the right value of the property,” said Chuck. The Alameda property is the real estate investment firm’s 12th acquisition in CA. 

With the current fund now fully invested, a new fund, The Multifamily Transformation Fund, is scheduled to launch later this year.

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COLTON, CA – San Diego-based Tower 16 Capital Partners has bought The District at Grand Terrace, a 352-unit multifamily project in Colton, California, for $63,050,000. The project was bought on an off-market basis from FPA Multifamily. 

Tower 16 will be overseeing $4 million in renovations and upgrades to the project including new outdoor amenities, an upgraded leasing office and interior renovations.

“The District at Grand Terrace fits very well with our investment strategy of purchasing assets below replacement cost in excellent locations with strong demand drivers,” said Tower 16 Tyler Pruett, principal.

This is the firm’s sixth acquisition in the last 12 months having bought over 2,000 units in that timeframe and its second buy in Southern California’s Inland Empire region.  

Mike Farley, principal, continued, “We are firm believers in the Inland Empire market given the strong job growth, limited new supply and overall occupancy projections for workforce housing.”

The District at Grand Terrace is located at 1315 S Meadow Lane Colton, within five miles of downtown Riverside and Loma Linda/Redlands. Colton is a strong submarket with average incomes of $66,000. The apartment complex is located near the I-215 freeway and is four miles from the Loma Linda University Medical Center.

The District at Grand Terrace features one-, two- and three-bedroom apartments with covered parking and private balconies or patios, four pools, a fitness center, two laundry facilities, two playgrounds and a leasing office.

Alliance Residential, a national multifamily real estate management firm, will take over as property manager. Tyler Martin, Alex Garcia and Chris Zorbas of Institutional Property Advisors represented both the buyer and seller in the transaction. Scott Peterson and Bill Chiles with CBRE’s Capital Markets team in San Diego handled placement of the financing on behalf of Tower 16.

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JACKSONVILLE, FL – Toro Real Estate Partners announced its third, fourth and fifth acquisitions in Jacksonville, FL; Whispering Oaks, Highlander Apartments, and River City Landing. Two of the three properties were bought off-market and the third was sourced through Dhaval Patel at Walker & Dunlop. This addition of the 552 units increases our units in the Jacksonville Market to 756 and total units bought nationwide to more than 3,100.

John Cohen, one of Toro’s Co-Founders, had this to say, “Jacksonville is an exciting market that we are looking to continue to grow in and buy a sizeable portfolio to hold for the next 3-7 years. With its brilliant population growth, low unemployment and positive ratio for supply and demand, we see Jacksonville as a market we want to be in for the foreseeable future in the multifamily space.”

Toro secured the properties for just under $39 million and is implementing a value-add strategy for roughly $4,000,000. This is a combination of exterior/amenity enhancements, rebranding and interior improvements. 

“These deals were very attractive for us because they provide fantastic economies of scale, with a business plot we have executed on in the past,” said Don DiRenzo, Toro’s other Co-Founder. “Our underwriting was conservative. The business plot improves the property, but still leaves a ton of meat on the bones for exit in 3 to 5 years or refinance for a longer hold.”

“We were fortunate that our Jacksonville Manager Lofty Asset Management, was already managing two of the properties, as well as a direct competitor of the third. Their intimate knowledge of the market and insight into the actual operations of the property provide a tremendous bonus to underwriting and our business plot.”

Toro used Ben Weddington at CBRE for two Freddie Small Balance loans for Whispering Oaks and Highlander, while Jeremy Nussbaum at Walker & Dunlop secured the loan for River City Landing. Toro plans to use Lisa Massis at Lofty Asset Management to manage all three assets along with their other two properties. Toro was able to raise roughly $17 million in equity for these deals, roughly one third coming from Toro’s principals.

These properties represent Toro’s 15th, 16th, and 17th buy since 2015. Toro Real Estate Partners is a private real estate investment firm focused on buying apartment communities throughout the Southeast and Midwest.

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