47-Unit Oakland Condo Building Sells for $15.9MM
In a continually escalating Oakland housing market, one local developer saw the shine on a previously empty Jackson Courtyard Condominiums, and decided to pay nearly $338,000 per unit to acquire it. The property, which is located on the corner of Jackson and 14th streets in Oakland is situated in the center of the Lake Merritt BART station area strategic plan, making it ideally connected to other points in the region, and especially jobs in San Francisco.
Joel Kelly, a principal with buyer Lakeview Land Partners said in a prepared statement “Our outlook is for the rental market in Oakland to continue to improve, we see many renters migrating from San Francisco. Not only has Oakland become a destination for renters and homeowners, it has become a viable place to do business for upscale restaurant bars and entertainment venues which has significantly increased the desire to live in Oakland.”
The building currently operates as a luxury rental apartment building, and it is made up of 45 fully-rented luxury condominiums, one live-work condominium and one hard corner retail commercial space. The new owners do not have plans to change that at the moment.
The Oakland-Emeryville condominium market is on a tear recently. There is no new inventory on the market presently and the market is at 0.5 months of resale inventory (6 months inventory is considered a balanced market), according to a February 2015 Oakland-Emeryville Condominium Market Report by Polaris Pacific. The median sale price is roughly 25 percent higher than the price Lakeview Land paid, at $420,000. Overall, the annual price change jumped by 24.6 percent and is now 5.6 percent below the market peak of $445,000 achieved in 2006, according to the same report.
Polaris Pacific is tracking 4,101 condominiums approved for development in the East Bay city with none in construction at present, signifying continued pressure on the market and eventual increase in prices over the year.
Kristopher Lamont of Bay Apartment Advisors and Kevin Turner of Marcus & Millichap represented the parties in sale.