A real estate investor from another state recently purchased an apartment complex in California for $42.5 million. The price of the commercial real estate purchase is essentially more than $177,000 per unit, with the building featuring 240 units. Securities Properties made the purchase in Solano County as part of its effort to expand its portfolio in the Northern California area.
Securities Properties already recently purchased a 244-unit complex in the Sacramento area for $57.4 million. The company's goal is to purchase properties that are in submarkets and markets where supplies are constrained and that have the potential to be renovated. Renovations of such properties can boost value for both the investors and for area residents.
The recent $42.5 million purchase is Security Properties' third joint venture with real estate investor New York Life Real Estate Investors. This deal ended up closing in late September. Only moderate renovations in the building's interior are currently planned to make the units more modern looking.
Commercial real estate can be an exciting industry in which to make purchases and sales. However, it is also highly competitive in California and can be relatively complex compared with residential real estate transactions. Overlooking important details or making a seemingly minor legal mistake can end up costing an investor or seller money, time and energy. Fortunately, a real estate attorney can provide detailed guidance during each stage of a commercial real estate deal to make sure that one's ultimate goals are achieved while also ensuring that all applicable rights are honored during the deal.
Source: northbaybusinessjournal.com, "240-unit Solano County apartment complex sells for $42.5M", Jeff Quackenbush, Oct. 4, 2017