CORFAC News

Rocklin, CA –TRI Commercial/CORFAC International President Tom Martindale, SIOR, announced today that John Gallagher, CCIM, CPM, and Managing Director from his company’s Rocklin office has sold two Northern California apartment communities for a total of $51 million.

Gallagher represented Tomanek Group in the acquisition of the 208-unit, Class A apartment community, Winsted at Sunset West. Winsted is located at 101 Coppervale Circle in Rocklin, CA. Rocklin is a suburb of Sacramento and about 15 miles east of the state capital.

Winsted sold for $36 million and the seller in the transaction was The Hill Companies. Gallagher reports that the capitalization rate (Cap Rate), or expected first-year return for the buyer on the deal is 5.0 percent.

Winsted was built in 2001 and is comprised of 13 two-story buildings on approximately 12.4 acres with one-bedroom, two-bedroom and three-bedroom apartment homes. Common area amenities include swimming pool, spa, fitness center, business center and covered parking.

Gallagher was the only broker involved in the $21.15 million sale of Seabreeze Apartments, located at 100 Larissa Lane in Vallejo, CA, a community in the northeast corner of the San Francisco Bay.

The Seabreeze seller was Tomanek Group and the buyer is a limited partnership headed by Jonathan Emami and David Beacham. Gallagher calculates that the going in Cap Rate is 6.0 percent. He reports that the buyer plans to remodel apartment interiors and make external improvements to the community as well, with the intention of increasing rental income.

Seabreeze has 184 apartment homes on about 8 acres. The Class B community was built in 1986 and renovated in 2006. It has 15 two-story buildings with one-bedroom and two-bedroom units. A gated community, onsite features also include a swimming pool and spa, a laundry facility and uncovered parking. A major benefit for Seabreeze residents is that the apartments are within a couple miles of the new Vallejo Regional Transit Center linking Vallejo and the North Bay to San Francisco, Oakland and Marin County via the San Francisco Bay Ferry system and bus service.

The new owners of Seabreeze assumed a Housing Assistance Payments (HAP) contract governing 38 percent of the Seabreeze units. HAP is the contract form of Section 8 housing assistance that is administered by the United States Department of Housing and Urban Development (HUD); it means that lower income, qualifying renters at Seabreeze may receive financial assistance to pay for a portion of their housing costs based on a HUD-sponsored study of market-rate housing costs in the region.

About TRI Commercial/CORFAC International
Founded in 1977, TRI Commercial/CORFAC International is a leading Northern California commercial real estate brokerage and property management firm specializing in San Francisco, East Bay and the Sacramento Metro property markets. The company has expertise in tenant and landlord representation services and helps clients buy and sell commercial and investment-grade property. The company serves office, retail, land, multifamily and industrial property sectors, with offices in San Francisco, Oakland, Walnut Creek, Sacramento, Roseville and Rocklin. For more information, visit www.tricommercial.com or call 415.268.2200.