San Francisco Bay Area apartment complex sells for $325m
GID has paid $325 million for a 402-unit apartment asset in the San Francisco Bay Area, according to media reports.
The seller was a partnership between Pauls Corp. and Fortress Investment Group.
As job growth remains elevated throughout the Bay Area, a lack of available housing has been a constant strain, reported Marcus and Millichap in its second quarter 2019 report. Out-of-reach single-family homes, which have become some of the most expensive nationally, have prompted a rental culture, lowering vacancy rates below 5 percent regionally. While these conditions will be alleviated somewhat over the coming year, with cycle-high development expected in all three metros of the Bay Area, the overall long-term trend of a housing shortage will remain in place. Vacancy will likely rise in 2019 as the new inventory is absorbed, yet rent growth will keep pace with inflation. These conditions have raised the pressure on politicians for further action on rent control, which will