In the rocky transaction environment of the past couple of years, having a buyer with a track record of closing deals means a lot.
Over the past two decades, San Francisco-based multifamily real estate investment firm Hamilton Zanze has developed dependability.
“The seller knows that when they sell to us, we're going to close at the price that we went under contract at,” David Nelson, a partner and the chief investment officer at Hamilton Zanze, told Multifamily Dive. “That's been really attractive and really valuable for a long time, but especially in the last 18 to 24 months when there's been a little bit of distress on the seller side.”
Nelson said his firm’s reputation was especially valuable when it bought Arnada Pointe, a 200-unit garden-style apartment community in Vancouver, Washington, last month for $42 million, according to property records. JLL brokered the deal, and Starwood was the previous owner, according to a 2023 Securities and Exchange Commission filing.
Denver-based Mission Rock Residential, an affiliate of Hamilton Zanze, has assumed management of the property, which is situated 11 miles north of Portland, Oregon.
“It's in a solid workforce housing location with great visibility and good drive-by traffic,” Nelson said.
Nelson said Hamilton Zanze was able to acquire Arnada Pointe at a significant discount to replacement costs. As supply slows in the next 12 to 18 months, the property should be able to capture future rent growth.
Arnada Pointe, built in 2005, offers one-, two- and three-bedroom apartment homes that range in size from 700 to 1,188 square feet. Units include in-home washers and dryers, spacious closets, vinyl flooring and private patios or balconies. Amenities include a resident clubhouse, outdoor swimming pool, playground, barbecue/picnic areas and a 24-hour fitness center.
Over the past five years, the owners spent money to fix deferred maintenance issues and add some value-add improvements, giving Hailton Zanze the opportunity “to step into an asset that had a newer effective age than what was shown on the offering memo,” Nelson said.
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