Three New Housing Bills to Impact Multifamily Real Estate Market

The multifamily commercial real estate market is likely to be impacted by three housing bills currently making their way through the California legislature. Senate Bills 330 and 13, and Assembly Bill 1485, each seek to relieve the state’s housing crisis by allowing additional construction and streamlining the approval process.

Sponsored by Senator Nancy Skinner (D-Berkeley), SB 330 will limit how strict cities can make their zoning. According to Bisnow, the proposal “prevents governments from downzoning until 2025; setting parking minimums or imposing housing moratoriums; or enacting other local measures that have made housing development nearly impossible in space-strapped areas.” It also “limits the number of public hearings on a zoning-compliant housing development proposal to five, and the length of time its permits can be considered.” Ideally this will make it easier and faster (and therefore cheaper) to build multifamily housing.

Assembly Bill 1485 aims to expand on 2018’s SB 35, a bill that was supposed to remove “discretionary review and other processes for mixed-income, completely zoning-compliant housing development proposals in cities not meeting their state-determined housing needs.” But due to strict qualification requirements, only three projects have been able to take advantage of the original law’s streamlining effort. The new law clears the pathway to more projects by loosening restrictions. Under AB 1485, 20% of new development units would be reserved for incomes of less that 120% of the area’s median income, a reduction from the previous requirement of 50%.

Finally, SB 13, sponsored by Senator Bob Wieckowski (D-Fremont), is designed to encourage the construction of accessory dwelling units (ADUs) by removing or decreasing fees. In addition, it “allows for automatic approval of an ADU permit application if a local agency has not acted upon the application in 60 days” and “removes the requirement that the owner of an ADU live in the main home while renting out the ADU, meaning both the main dwelling and accessory unit can be rented.” While this will not directly apply to the multifamily industry, the additional availability of ADU rental units may soften the rental housing market.

If they make it through the committee and amendment processes, each of these three bills will be voted on in early September.

Source: Bisnow

Noel Carrillo joins NAI Northern California as Investment Advisor in San Francisco

NAI Northern California is pleased to announce that Noel Carillo has joined as Investment Advisor in San Francisco. Noel specializes in multifamily properties. He has called San Francisco home for nearly a decade, seeing the City evolve over one of its most transformative eras, and now brings that local awareness to his clients in a manner that transcends the transaction and commits to long-standing relationships through open communication and transparency.

Noel is originally from San Diego and is currently attending City College of San Francisco, where he is pursing his degree in Economics. His professional enthusiasm extends into his personal life where, aside from cherished downtime with friends and family, he pursues adventures like saltwater sportfishing–frequently netting yellowfin, bluefin, and yellowtail tuna–and travels to such far-off locales as Japan, Singapore, and Indonesia.

Learn more about Noel Carillo

Cole Byrd joins NAI Northern California as Market Analyst in San Francisco

NAI Northern California is pleased to announce that Cole Byrd has joined as Market Analyst in San Francisco. Cole is training to be an investment advisor, specializing in multifamily properties. Cole was raised in Orlando, FL and Charlotte, NC before making the move to San Francisco. He graduated from the University of San Francisco with a bachelor’s degree in Entrepreneurship and Innovation and began his career in the automotive industry, working for Sonic Automotive and AW Collision Group. NAI Northern California is proud to welcome him to the San Francisco team.

Learn more about Cole Byrd

NAI Northern California Presents: Record-Breaking Sale of 25 Units in Lafayette

Sale of 3535 Brook Street in the East Bay Area by NAI Northern California sets record price per unit and per sq. ft.

LAFAYETTE, CA –  August 6, 2019 –  NAI Northern California is pleased to announce the sale of 3535 Brook Street in Lafayette for $12 million, which shatters the previous pricing record by more than $50,000 per unit and $44 per square foot. The Mitchell Warren Team and Berger Mandel Team represented both the buyer and seller, delivering an unsolicited all-cash offer. This 25-unit apartment building is blocks from Mt. Diablo Boulevard and from the Lafayette BART station.

“The buyer was looking for assets in the Lafayette market, and our team was able to secure a property that he had wanted to purchase for many years,” according to Vice President Tim Warren. “This was definitely a win/win transaction for both the buyer and seller.”

3535 Brook Street is a fully leased 25-unit apartment complex, a rare multifamily asset in the Lamorinda market. It features an on-site laundry, swimming pool, spacious garden, and generous parking. The site is conveniently located just a block away from Lafayette Square and the downtown shopping district and within walking distance of local schools, library, restaurants, and other amenities.

Lafayette is known for its pastoral rolling hills, good schools, and wealthy inhabitants. In 2016, the median household income in Lafayette was over $140,000, more than twice the statewide average and about two and half times the national median.

It is rated #5 in “Best Places to Live in Contra Costa County” and boasts a thriving nightlife without sacrificing the “small town” feeling and pleasant weather for the variety of outdoor amenities in the vicinity.

Lafayette is also near several local attractions, including but not limited to the Lafayette Hillside Memorial, Lafayette Reservoir Recreation Area, and Briones Regional Park.

The Mitchell Warren Team is comprised of Kent Mitchell, Tim Warren, Randell Silva, and Alex Lin. The Ethan Berger Team is comprised of Ethan Berger, Benjamin Mandel, and Garrett Blair.

 

About NAI Northern California

NAI Northern California is a full service commercial real estate firm serving the San Francisco Bay Area and beyond. Our team delivers technology-enabled commercial real estate services that create value for our clients, industry, and communities.

NAI Northern California is a partner of NAI Global, the largest commercial real estate brokerage network, with more than 375 offices worldwide and over 6,000 professionals completing in excess of $20 billion in commercial real estate transactions globally.

Recently on the San Francisco Business Times Book of Lists, NAI Northern California hit the top 5 and 6 spots in San Francisco and the East Bay and top 15 Bay Area wide. NAI Northern California is part of the NAI Global network, recently recognized by Lipsey as the number 4 most recognizable commercial real estate brand.

NAI Northern California sale of 888 Vermont Street featured by Multi-Housing News

NAI Northern California’s sale of the Vermont Apartments in Oakland was featured by Multi-Housing News in a recent article, “Oakland Community Trades in All-Cash Sale.” The article covered how the Mitchell Warren Team of Vice President Tim Warren, Senior Vice President Kent Mitchell, Investment Analyst Alex Lin, and Investment Advisor Randell Silva both represented the seller and found a buyer for the 44-unit community in a $14 million all-cash sale.

Located at 888 Vermont Street in Oakland’s Grand Lake neighborhood, the Vermont Apartments features a mix of 2-bedroom, 1-bedroom, and studio units plus two penthouses. The community’s amenities include four laundry rooms, a pool, view balconies, and a 43-space parking garage.

What’s the hold-up on housing development in the Bay Area?

Bay Area paradox: We need housing, but we don’t want to build faster.

Chronic lawsuits against new Bay Area housing developments. Loud, angry protests against pro-growth legislators and mayors. If the Bay Area has an all-season contact sport, it’s the recurring NIMBY fights against housing construction. And although almost everyone agrees housing prices are too high, few want to see faster development to tackle the problem, according to a recent Bay Area poll for the Silicon Valley Leadership Group and this news organization.

Read more on NAI Northern California’s Newsletter

Which Bay Area neighborhoods are at risk for a major earthquake?

Earthquake map reveals liquefaction risks in Bay Area neighborhoods.

No place in the Bay Area is safe when it comes to the inevitable, devastating earthquakes that loom on the horizon. But some neighborhoods are better situated than others.

Read more on NAI Northern California’s Newsletter

Can opportunity zones improve Calfornia’s economy?

How federal ‘opportunity zone’ tax incentive can help California build an inclusive economy.

The federal opportunity zone program created by the 2017 tax overhaul, enables investors to defer capital gains taxes on funds invested in designated communities. Opportunity zones offer one path forward that relies on private capital to bear the cost. The program is designed to attract investors holding $6.1 trillion in unrealized capital gains, according to the Economic Innovation Group.​

Read more on NAI Northern California’s Newsletter

How are Tech IPOs affecting Bay Area Housing?

How upcoming tech IPOs could affect the Bay Area housing market.

Last week, San Francisco-based ride-hailing startup Lyft finally filed to go public – the first of what is expected to be a number of area startups (such as Uber, Slack and Pinterest) that could be making the leap from the private market this year. To understand what this means for those living and working in the Bay Area, I talked to a couple of people in the real estate industry to get their thoughts. The short answer: The IPOs will almost certainly impact inventory and pricing.

Read more on NAI Northern California’s Newsletter