Multi-building sales represent highest value apartment deal to date in 2007

Radius Group Commercial Real Estate is pleased to announce the completion of two large apartment complex sales totaling almost $20. million. Both complexes are located in the City of Santa Barbara. The first deal was the sale of 554-555 Coronel Place, a 2 building complex that includes 49 units. Steve Brown represented the seller and Steve Golis represented the buyer, an out-of-area investment company. The property was listed for $12.75 million dollars.

The second deal was the sale of 3754 San Remo Drive, in the upper State Street vicinity, comprised of 29 rental units. Steve Golis represented the buyer in the sale. The San Remo property sold for over $7.5 million dollars. Both deals were completed in early February.

Both properties sold to the same buyers who have strong local ties, who intend to remodel the buildings to make them more attractive and to upgrade their overall value and rentability.

“The sale of these two properties can be viewed as part of a larger trend,” said Steve Golis, co-founding principal of Radius Group. “Buyers and investors are seeking older properties in quality areas – with a good mix of units – to remodel and put back on the market with market rents.”

Radius Group sees the local commercial/investment market remaining strong as a result of the high demand. In a tightening commercial market situation with continuing demand for high quality office space, owners and buyers could also look to commercial properties where an investment in needed improvements or renovations can bring value. When renovations increase the usability and desirability of a property, the investor is able to better meet the demand for quality space in a town that has limited inventory.

“Here in Santa Barbara, growth restrictions and lack of undeveloped land impact the ability of investors to create new commercial properties,” said Steve Brown, co-founding principal of Radius Group. “Investors do have opportunities to improve existing product to create the high-quality office or apartment space that people are looking for.”