As San Francisco continues to post record rents on the backs of the artificial intelligence gold rush, an East Bay real estate investor has jumped into the mix.
Arthaus Partners, an Oakland-based developer and investor that focuses on distressed and value-add real estate, acquired the 12-story, mixed-use property at 1330 Bush Street in the Nob Hill neighborhood last week, property records show. The former owners, Equity Residential out of Maryland, sold the property for $25 million, according to the transfer tax paid on the transaction. The property includes 117 residential units and more than 16,000 square feet commercial space on the ground floor.
New York-based real estate investment trust BrightSpire Capital fronted a $24 million loan for the acquisition.
The property last traded in 2011 out of foreclosure for $30.4 million. That deal represented a steep discount from the assessed value of more than $38 million at the time, property records show.
ArtHaus Partners (formerly known as Riaz Capital, named after its founder, Riaz Taplin) manages a portfolio valued at $800 million, according to its website. The company made headlines last year after it acquired nine Oakland apartment buildings with 268 units for only $30 million, which the San Francisco Business Times regarded as the Bay Area’s Housing Deal of the Year.
“We’re really trying to buy as many of these types of deals as possible,” Taplin told the publication at the time.
Taplin’s plans for his new Nob Hill property are unclear — beyond changing the apartment building’s name to ArtHaus Terraces. The company has previously focused on preserving and bringing affordable housing to the Bay Area, most notably in its micro-studio project.
“We’re trying to build naturally occurring affordable housing, versus income-restricted [housing],” an ArtHaus Partners rep told Mercury News last summer.
After idling in a doom loop for years after the pandemic, San Francisco has surged as the market to watch in the U.S., as offices and apartments are leasing at record numbers. In May, the median rent for a one-bedroom apartment eclipsed $4,000 for the first time in city history, marking a 21 percent year-over-year increase. During that same time, the national median rent for a one-bedroom decreased by 0.1 percent, according to Zumper’s national rent report.
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