Hamilton Zanze and Graham Street Realty, two affiliated national real estate investment firms based in the San Francisco Bay Area, and New York-based investment management firm Davidson Kempner Capital Management have acquired a 60-property portfolio in Northern California’s Marin and Sonoma counties for $436.5 million. The properties include more than 1.4 million square feet of commercial and multifamily space.
The acquisition, which closed Dec. 15, was transacted through the U.S. Bankruptcy Court, where the properties have been held since late last year. The group was selected as the winning bidder after the court’s open bidding process in September. The properties were previously owned by Professional Financial Services.
With Hamilton Zanze’s focus on multifamily and Graham Street Realty’s focus on commercial real estate, the group was uniquely positioned to take on this diverse portfolio. The portfolio includes 935 residential units and approximately 680,000 square feet of commercial space, with the properties ranging from 3,500 square feet to 85,000 square feet.
The operation of the 60 properties will be split between the firms’ affiliated property management firms. Mission Rock Residential will manage the multifamily assets, and Paramount Property Co. will oversee the commercial office buildings.
“We look forward to investing over $50 million of capital into these properties,” said Ashlee Cabeal, chief financial officer at Hamilton Zanze.
Most of the multifamily assets represent workforce housing, which will receive over half of the projected capital investment to provide safe and appealing housing to renters at all income levels.
The Hamilton Zanze team’s roots have been based in Northern California real estate, with principals Mark Hamilton, Tony Zanze, and Kurt Houtkooper starting their careers in the region more than three decades ago. Throughout the firm’s expansion across the country, the Bay Area has remained the firm’s headquarters since it was established in 2001.
“Closing out Hamilton Zanze’s 20th year in operation with this exciting acquisition right here in our hometown has been momentous for us,” said Houtkooper, chief investment officer and president. “We started here and have grown here, and we are looking forward to the immediate growth opportunity the addition of this portfolio will bring to our teams’ collective work in the Western region.”