Q2 2012 San Francisco, California Apartment Property Sales Analysis

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Q2 2012 San Francisco, California Apartment Property Sales Analysis

Metro Volume and Pricing


The dollar value of qualifying single property apartment investment sales has been slightly slower over the past three quarters.* In the second quarter of 2012 Reis reports 33 deals for $145.5 million at a mean price of $177,715 per unit.* The year-to-date total of $296 million is less than half the $733 million total recorded for 2011. The 72-unit Pacific Place apartments in Daly City sold for $20.35 million ($282,639 per unit). The Pacifica Companies sold it to MG Properties Group.

Top Submarkets


The South San Mateo submarket leads the rest in the dollar value of sales over the past four quarters, according to Reis, at $110 million. The Civic Center/Downtown leads in units at 656 sold. Among submarkets with substantial sales volumes, South Marin leads in price per unit at $326,159.

Cap Rate Comparisons and Forecasts


The mean cap rate for second quarter deals in San Francisco was unusually high at 7.4%, one of the rare quarters when San Francisco was higher than the U.S. and West region averages. The mean cap rate has been generally above 6.0% since mid 2009 after having been generally below that level in previous years when the market was hot. The rolling 12-month mean as of the second quarter is 6.4%, up 40 basis points from the prior quarter and 90 from a year earlier. Little change is forecast going forward.