As Seen at GlobeSt.com

33-Year-Old Apts. Near BART Take $140K/Unit
By Brian K. Miller
May 20, 2008

SAN FRANCISCO- Chateau El Camino, an aging 85-unit apartment community in Daly City, immediately south of San Francisco, has changed hands for $11.8 million, or just under $140,000 per unit, according to Arroyo & Coates, the brokerage firm with the disposition assignment. The purchase price translates to an initial cap rate in the low 4% range, according to local industry sources.

Completed in 1965, Chateau El Camino is located across from the Bay Area Rapid Transit System station at Colma/Daly City, at the corner of Mission (El Camino Real) and A streets. The complex includes studio-, one-, and two-bedroom units in one building surrounding a central courtyard.

The new owner is Diablo Wealth Management of Walnut Creek, CA. The ownership plans a major rehabilitation of the property under the name Hillside Courtyard. The seller, from out of state, was the Keefe Family Trust, according to public documents.
David Silver, Nathan Blair, and Ken Meislin of Arroyo & Coates had the disposition assignment. Diablo Wealth Management acted on its own behalf.

Blair tells GlobeSt.com that the rehab should allow the new ownership to push rents significantly because the property is across the street from an Equity Residential property for which the rental rate is “hundreds” of dollars per month higher. The current average asking rent at Chateau El Camino is just over $1,000 per month.