San Francisco apartment portfolio sells for $260m

Nahla Capital, a New York–based real estate private equity firm, has sold a 30-property multifamily portfolio for $260 million. The properties total 400 units and are all located in San Francisco.

An undisclosed buyer acquired the assets.

Potential regulatory changes and the multifamily construction pipeline are driving Bay Area multifamily market sentiment, according to Marcus & Millichap. Amid several potential legal and political changes in the fall midterm elections, investors are allocating toward long-term holdings. The slowdown in construction has prompted significant tightening, allowing investors to reposition assets toward areas showing significant tenant and rent growth. As the development pipeline reaccelerates next year, opportunities for new construction will create some market dislocations, prompting investors to ensure leasing and portfolio maneuvers are accomplished through the remainder of 2018.

Price appreciation remains extremely robust