Rubicon Point Partners added another Bay Area multifamily asset to its portfolio.
The San Francisco-based real estate investment firm acquired the 203-unit Madelon apartments in the Mission District, Multi-Housing News reported. Rubicon bought the property from JRE Partners for $119.3 million with the help of an $81 million loan from Equitable Insurance Company. The price works out to $399,000 per unit.
The market-rate residential building, at 2823 18th Street, has studio, one- and two-bedroom units with an average rent of $3,812 per month. Amenities include in-unit laundry, a fitness center, a clubhouse, a rooftop terrace and a lounge, as well as 9,000 square feet of ground-floor retail. The property was 99 percent leased as of last month.
Rubicon made the purchase using its Rubicon Point II fund, which was designed to provide the company with the means to invest in distressed assets across the Bay Area. Rubicon has been looking into distressed properties and purchasing them at a lower rate than previous sales, per Multi-Housing News.
The ongoing artificial intelligence boom has been a factor in Rubicon’s ramping up of its multifamily purchases, according to Multi-Housing News. A recent report from CBRE backs up those hopes, with the firm predicting that more than 50,000 people could flock to the city to work in the growing AI sector.
A handful of other multifamily properties in the Bay Area have traded hands in recent weeks.
Earlier this week, Bridge Housing acquired the Canyon Ridge at Napa Junction community in American Canyon in a $57 million deal. The Oakland-based firm picked up the 148-unit property from The Reliant Group with a 10-year $35 million acquisition loan from Capital One.
Prior to that, an affiliate of Acacia Capital purchased the Waymark apartments in Walnut Creek for $190 million. The 385-unit community was sold by developers Blake Griggs Properties and Transit Village Associates and features studio, one-, two- and three-bedroom units.
Besides the Madelon multifamily property, Rubicon Point is the owner of the Fitzgerald apartments at 2750 19th Street in San Francisco.
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