Carmel Partners spends nearly $1B for 3K apartments in Daly City

Carmel Partners bought 3,000 apartments in Daly City for nearly $1 billion.

The San Francisco-based real estate investor, acting through affiliates, bought the apartments at six sites, the San Jose Mercury News reported. The sellers were affiliates of G. Bakar Properties, based in San Francisco. 

The $1.3 billion deal – when combining equity, assumed debt and a financing loan – works out to $433,333 per unit. Minus the nearly $349 million loan, the $925 million purchase comes out to $308,333 per unit.

The apartments operate as Westlake Village Apartments, with complexes at 333 South Park Plaza Drive; 220 Lake Merced Boulevard; 10 Forest Grove Drive; 111 South Mayfair Avenue; 27 Northgate Avenue; and 35-45 Eastmoor Avenue and 4-28 Terrace View Court.

The estimated deal value is derived from a combination of the cash Carmel Partners paid for the real estate, prior loans incurred by the seller for which the buyer assumed responsibility, and a loan that Wells Fargo Bank provided to Carmel, according to the Mercury News.

Carmel Partners paid $675.2 million for about 70 parcels containing the apartments. It agreed to assume responsibility for three loans totaling $249.8 million. The deal package, combining equity and the assumed debt, came to $925 million.

The company also secured a loan from Wells Fargo of $348.5 million.

That brings the total value of the deal package to about $1.3 billion, based on Carmel Partners’ cash equity payment of $675.2 million, the $249.8 in assumed loans and the $348.5 million from the Wells Fargo financing, according to a Mercury News analysis of county documents.

“Westlake Village Apartments is a coastal community that is spread out on 47 acres” with apartment homes, cottages and townhomes,” apartments.com states. 

In November, Carmel Partners won approval to build 227 apartments at 300 Mosley Avenue in Alameda. 

Earlier in the month, it filed plans to replace a Sunnyvale warehouse at 777 Sunnyvale Saratoga Road with 377 apartments and 40 townhomes. 

In September, the developer secured a nearly $365 million loan to build a 66-story residential tower in Long Island City in Queens. 

— Dana Bartholomew