IEC ACQUIRES RARE UNRENOVATED APARTMENT BUILDING IN MARIN COUNTY
Marin County, Calif. – August 7, 2015 – (RealEstateRama) — Interstate Equities Corporation (IEC), an institutional fund manager has acquired a rare, un-renovated, 46-unit multifamily community in San Rafael, California from a private family owner.
The 45-year-old Marin Gardens Apartments is still in its original condition, providing a tremendous opportunity to create value, according to Marshall Boyd, President of IEC.
“This was a unique opportunity based on location and property condition,” says Boyd. “In Marin County, very few apartment communities in the 25 – 100 unit range are ever available for sale. Families tend to own these properties for generations. Further, identifying a property that has been kept in good condition but hasn’t been renovated is akin to finding a needle in a haystack in the current multifamily market.”
Finding these proverbial haystack needles is a specialty of IEC’s according to Boyd, who notes that “well located, unoptimized multifamily assets” is the company’s niche.
“Our acquisition strategy is extremely targeted, which gives us a competitive edge over more general real estate fund managers,” he says. “We only acquire multifamily properties in the Bay Area and Southern California with significant opportunity to add value. Through this strategy, we are able to consistently deliver attractive yields and risk-adjusted returns to our investor base of pension funds, endowments, foundations and family offices.”
The Marin Gardens apartment community was 95 percent occupied at the time of the acquisition. IEC plans to implement immediate interior and exterior upgrades, including modern fixtures, custom paint and the addition of modern, drought-resistant landscaping.
Based on these upgrades, and the market, IEC expects to grow rents steadily.
“Rent growth in San Francisco has been prodigious, and it’s our belief that market rent growth in Marin will increase at an accelerated rate relative to other parts of the Bay Area,” says IEC Associate Ben Doran.
“While this property is just a 15-minute commute into San Francisco, we don’t anticipate the need to go outside the local market to maintain this property’s strong occupancy rate,” Doran adds.
“There are good renters with stable income in San Rafael, which fuels our confidence in continued renter demand at the property,” Doran says. “In addition, the property is well-positioned to remain competitive in the market. Class A assets approximately 400 yards from Marin Gardens charge asking rents twice as much as the current rents at Marin Gardens.”
Ryan Wagner of Colliers represented both the buyer and the seller in the transaction.
Founded in 1981, Interstate Equities Corporation (IEC) is an institutional fund manager that invests in and transforms California apartment communities on behalf of endowments, foundations, family offices and pension funds. The firm has taken roughly 85 properties full-cycle for its investors, and has completed more than $1.5 billion in real estate transactions since 2006.
Utilizing repositioning strategies via its integrated property management platform, IEC secures and generates value for its long-term partners. The firm credits strong relationships and an academic, data-driven approach to investment and property management as the core of the consistent results it delivers to investors.
More information is available at www.interstateequities.com.
Contact:
Jenn Quader or Lexi Astfalk
Brower, Miller & Cole
(949) 955-7940
Lastfalk (at) browermillercole (dot) com
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