Texas investor scoops up eight Oakland apartment complexes
Buyer pays nearly $80 million for buildings in choice East Bay districts
OAKLANd >> A big-time real estate investor from Texas has grabbed several apartment complexes collectively containing hundreds of units in choice Oakland neighborhoods, an indication that some major players see plenty of upside in the East Bay’s largest city.
Invesco Advisors, acting through an affiliate, has bought eight apartment buildings on the edges of downtown Oakland and near Lake Merritt, according to Alameda County property records.
“This is a very interesting play,” said Edward Del Beccaro, an executive vice president with TRI Commercial, and Bay Area managing director for the commercial real estate firm. “Invesco is a major investor, big guys out of Dallas.”
The property purchases are primarily in or near downtown Oakland, the vibrant Uptown district, the Pill Hill section, and Lake Merritt area of the city, county records show.
“Kaiser and Sutter are both expanding in the areas of the purchases,” Del Beccaro said. “These apartments are all in upscale parts of Oakland. The neighborhoods are going through upgrades and improvements.”
All told, the Invesco affiliate paid $79.2 million for the eight complexes, with prices ranging from about $20 million to just under $5 million, county documents filed on Sept. 24 show.
The apartments together contain 255 units, according to information gathered from the website of Mosser Cos., a Bay Area real estate firm that sold the eight residential properties.
The addresses of the eight apartment complexes are 1425 Harrison St., 265
Vernon Ave., 406 Van Buren Ave., 444 28th St., 450 28th St., 454 34th St., 351 Lester Ave., and 509 Sycamore St., according to public records.
Alameda County records showed a range of prices for the individual properties.
• 1425 Harrison St., a 61- unit apartment complex in downtown Oakland’s Lakeside area, was the most expensive in the just- purchased portfolio of residential sites, with Invesco paying $19.9 million. “1425 Harrison is a majestic building with a brick facade and art deco flavor,” Mosser said on its web site.
• 265 Vernon Ave., with 44 units, was bought for $15 million. Referring to the famed South Beach area of Miami, Mosser said of the complex: “The Art Deco Arms is a charming Adams Point building with a South Beach feel, with majestic palm trees, brightly painted railings and private patios overlooking the sunny courtyard pool and grilling area.”
• 406 Van Buren Ave., with 30 apartments, traded for $ 9.5 million. “Mere
blocks from the sunny shores of Lake Merritt, 406 Van Buren is a spacious mid- century gem located in the heart of Oakland’s Adams Point neighborhood,” Mosser said on its web site.
• The prices for three apartment complexes in or near the Uptown area or North Oakland district: 444 28th St., 34 units, $9 million; 450 28th St., 30 units, $8.7 million; 454 34th St., 24 units, $6.3 million.
• The smallest apartment complexes: 351 Lester Ave., 18 units, $6.2 million; 509 Sycamore St., 14 units, $4.6 million.
San Francisco- based Mosser says the company remains entrenched in Oakland and still owns numerous apartment complexes in the East Bay city.
“Mosser remains deeply committed to Oakland,” said Neveo Mosser, chief executive officer of Mosser. “We will continue to invest in the city and deliver dedicated and responsive property management for the families we serve in our 12 other properties.”
The company has operated in Oakland for de
cades.
“Mosser has been at the heart of the Oakland metropolitan community since the 1970s,” Mosser said.
Dallas- based Invesco appears to be proceeding with an optimistic longterm outlook for Oakland despite the short-term uncertainties regarding evictions and rent control, Del Beccaro said.
“A major institutionalgrade investor is betting on the upside for Oakland,” Del Beccaro said. “Invesco has a 10-year time horizon.”