Foothill Terrace Sale Cements Demand for Well-Located Value-Add Multifamily

San Leandro market fundamentals held strong in the past year. Occupancy at the end of 2020 was 95.1 percent compared to the overall East Bay occupancy of 94.2 percent.

A 25-unit multifamily property, Foothill Terrace in San Leandro, recently sold for $6.8 million or $275,000 per unit. Foothill Terrace’s unrenovated, partially renovated and fully renovated units turned in 2020 and averaged $2,106 per unit at lease-up.

Located on a 1.16-acre parcel, Foothill Terrace is comprised of four buildings with approximately 21,526 square feet of rentable space. Prior to putting the property on the market, the previous owner made considerable improvements to seven units. Two units are considered fully renovated. The remaining 16 unrenovated units have significant value-add potential. Additional improvements were also made to the property’s exterior in the past several years.

Colliers’ Rich Martini procured the undisclosed buyer and seller.

“The sale of Foothill Terrace confirms the ongoing investor demand for well-located East Bay value-add multifamily properties,” said Martini. “Buyer interest was heightened by the presence of all two-bedroom, two-bath units as well as the opportunity to renovate unit interiors upon turnover, mark rents to market and significantly increase net operating income. Demand for multifamily in East Bay markets such as San Leandro remains extremely high as apartment rents in these submarkets have held up very well over the past year-and-a-half compared to more urban centers such as San Francisco and Oakland where COVID lockdowns triggered a mass exodus out of urban core cities.”