San Jose-based SMD Enterprises has acquired a Fremont multifamily building for $27 million, according to public records, as strong rental demand in the East Bay has pushed up prices for multifamily properties.
The price comes out to $453,333 a unit. The seller was Redwood City-based WSB Properties.
Victoria Park was built in 1987 and is located at 40908 Inglewood Common. The building has 32 one-bedroom units and 28 two-bedroom units.
The property is near Fremont’s Central District, as well as shopping areas, local schools, dining options and Central Park, which is home to Lake Elizabeth. It is also two miles from the Fremont BART station and 2.5 miles from the 680 and 880 freeways.
The East Bay has experienced migration from other Bay Area markets since the pandemic transitioned a lot of employees to remote work, according to a third quarter report by brokerage Marcus & Milichap. The influx of new residents has contributed to a strong multifamily market in the East Bay. The vacancy rate is up slightly to 3.3 percent from the record 2.7 percent last quarter; the report however, said this is due to a number of new projects coming to market during the quarter. The East Bay’s inventory increased its inventory of 816,000 units by 4 percent in 2022.
Fremont had an effective rent growth that outpaced all other East Bay submarkets at 17.6 percent year-over-year.
“The low overall vacancy combined with the strong rental demand in the East Bay makes the area a sought-after region for investors,” Adam Levin from Marcus & Milichap, who represented the buyer and seller in the Victoria Park deal, said.
Just a few months ago another Fremont apartment entered the market asking for more than Victoria Park. Parc 88, owned by Trion Properties, is seeking $42 million, or $477,000 per unit, for the 88-unit property. In what was the largest multifamily deal in the East Bay this year, San Francisco-based Rockwood capital acquired Arroyo Residences in Walnut Creek for $66 million, or $660,000 a unit.
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Large-apartment Fremont complex asks nearly $500K per unit