DUBLIN — A big apartment complex in Dublin has been bought for more than $45 million in a deal that hints at weakness in some segments of the Bay Area residential real estate market.
Tralee Village Apartments in Dublin has been bought by an affiliate of CityView, a veteran real estate investment and development firm.
The CityView affiliate paid $46 million for the 130-unit apartment complex at 6599 Dublin Boulevard in Dublin, according to documents filed on June 18 with the Alameda County Recorder’s Office.
“Tralee Village was a prime opportunity to acquire a well-located, high-quality asset in a highly sought-after submarket that has experienced significant population and employment growth since the pandemic,” said Sean Burton, CityView’s chief executive officer. The deal was arranged through Jason Parr, a senior managing director with Berkadia, a commercial real estate firm.
At the time of its purchase of Tralee Village Apartments, the CityView affiliate obtained a $33.5 million loan from Invesco Commercial Real Estate Finance Investments, the county public records show.
The $46 million price suggests some weakness has crept into the Bay Area’s residential real estate market at a time of skyrocketing interest rates and soaring inflation.
In 2017, JB Matteson, a San Mateo-based real estate investment firm, paid $55 million for Tralee Village Apartments, county public records show.
This means that the Tralee Village apartment complex is worth about 16% less than it was seven years ago.
In the wake of the spike in interest rates and inflation, Bay Area apartments are selling for somewhat less than before the surge in rates and consumer prices, based on a non-scientific survey of high-profile deals involving multifamily properties in the region.
After the jump in interest rates, the average price for apartment buildings that were sold was $520,700 per unit, based on selected Bay Area transactions that were completed in 2024 and in the final three months of 2023.
This news organization’s spot check of large apartment transactions in the South Bay and East Bay suggests that per-unit values in 2024 are running roughly 5% below the values that were common before the spike in interest rates materialized during 2023.
With interest rates soaring, apartment buyers find it tougher to justify purchases unless the prices are sufficiently low for the residential complexes. That’s because the monthly mortgages will be expensive if the buyer obtains a loan to finance the purchase.
The Tralee Village apartment complex purchase price equates to slightly over $353,800 a unit.
Despite some of the uncertainties swirling around Bay Area real estate, CityView believes the Tralee Village complex offers plenty of upside and opportunity.
“With a 95% average historical occupancy and robust market fundamentals, Tralee Village fits squarely in our strategy of acquiring communities in supply-constrained markets with high barriers to entry at significantly below replacement cost,” Burton said.
Tralee Village was originally built in 2011. The complex features one-, two- and three-bedroom units within three-story buildings.
The apartment complex also includes a “resort-style pool,” a spa, fitness studio, neighborhood park, children’s play area and a resident lounge equipped with Wi-Fi.
“Cityview is planning a comprehensive renovation of the interiors and common areas, including new unit flooring, lighting, kitchen and bathroom countertops and accessories,” CityView stated in an email it sent to this news organization.
Tralee Village also contains 30,000 square feet of ground-floor retail.
“We look forward to reimagining Tralee Village and elevating its design, finishes and amenities to rival new Class A communities,” Burton said.