OAKLAND, CALIF. — Thailand-based Land & Houses PCL has purchased Domain, a 264-unit luxury, transit-oriented apartment community in Oakland, for $103.2 million. The sales price equates to approximately $391,000 per unit.
Institutional Property Advisors (IPA), the multifamily brokerage division of Calabasas, Calif.-based Marcus & Millichap that represents institutional and major private investors, arranged the sale on behalf of the seller, an affiliate of Berkshire Property Advisors. Stanford Jones, executive vice president of investments, and Philip Saglimbeni and Salvatore Saglimbeni, both vice presidents of investments at IPA, represented the seller in the transaction.
Domain, which was completed in 2011, is the only luxury rental community in Oakland’s City Center neighborhood, according to Philip Saglimbeni. He also says that Oakland’s rental rates are on the rise. According to Marcus & Millichap’s most recent market report on Oakland’s multifamily market, effective rents will settle at $1,575 per month by the end of 2013, an annual increase of 3.3 percent.
“In addition to the continually improving local employment fundamentals, various competing properties are now converting to for-sale condominiums. The combination of these factors suggests rental rates will continue to climb throughout the Oakland market,” says Saglimbeni.
The community is located at 1389 Jefferson St., about a three-minute walk to the 12th Street Oakland City Center Bay Area Rapid Transit (BART) station, which has a travel time of approximately 12 minutes to San Francisco’s financial district.
“Transit-oriented developments are highly sought after by both institutions and large private buyers,” says Jones.
Domain features studio, one-, two- and three-bedroom floor plans that average approximately 948 square feet. Each unit includes floor-to-ceiling glass, washer and dryer units, kitchens with stainless steel appliances, dark wood cabinets, natural stone countertops and high-end fixtures.
Domain’s community amenity package includes a sky-deck outdoor terrace with a dining area, outdoor kitchen and lounge seating; a 24-hour state-of-the-art fitness facility; yoga facility with Pilates reformers; bike maintenance workshop; resident lounge with WiFi access and a coffee station; podium parking; and valet door-to-door trash and recycling services.
According to ForRent.com, rental rates for the units at Domain are as follows:
- Studio: from $1,925
- One-bed: from $1,838
- Two-bed: from $2,792
- Three-bed: from $3,467
— John Nelson