After being largely vacant from commercial property sales at the height of the economic recession, investors in North Bay multifamily complexes are moving back into the market.
[caption id="attachment_69317" align="alignleft" width="315"] Broll Investments purchased 35-unit condominium-style Cedarwood Apartments north of Santa Rosa for $4.1 million in August at a significant discount. (image credit: Cassidy Turley)[/caption]
After value-add buyers started buying back into San Francisco Bay Area multifamily properties at the bottom of market activity in 2009, institutional investors such as real estate investment trusts, pension funds and insurance companies started dipping their toes back into investments in 2010 for the best 100-plus-unit properties.
"People have realized it's safe to invest again," said Scott Gerber of Cassidy Turley. "Clouds are parting, the economy is starting stabilize, and rents are starting to gain stability and improve."
[caption id="attachment_69318" align="alignright" width="162"] Scott Gerber[/caption]
North Bay complexes enjoyed a resurgence of sales starting early last year, according to local real estate experts. Now, syndicators or sponsors of real estate investment groups are stepping up their purchases of North Bay properties.
"We saw a lot of properties close escrow in the latter part of last yera, but there remains tremendous demand for apartment properties, particularly in Marin County, because of a lack of areas where you can build new properties," said Ron Giannini of Keegan & Coppin.
[caption id="attachment_69319" align="alignleft" width="180"] Ron Giannini[/caption]