"Two just-completed deals for apartment properties in Oakland point to a frail market for multifamily residential hubs in that municipality, as values continue to falter in the East Bay's largest city. One deal involves the purchase of The Amelia apartment complex at 411 29th St. in Oakland's Pill Hill district at a discount to its prior value. A South Bay investor paid $21 million for the 83-unit Amelia apartments, documents filed on Dec. 2 with the Alameda County Recorder's Office show."
"Separately, ArtHaus Partners and Belay Investment Group teamed to foreclose on a loan in a streamlined fashion that enabled them to gain ownership of nine apartment complexes in Oakland's Lake Merritt area, according to documents filed on Nov. 25 with the Recorder's Office. The unpaid debt at the time of the foreclosure was $57 million. Both deals suggest that the Oakland apartment market remains in rough shape."
"The Amelia apartment deal enabled Krishna Koganti and Seetaram Vemulapalli, both from Santa Clara County, to purchase the complex from a lender that had previously foreclosed on the multifamily property. In October 2024, SREC Amelia Owner, which is located in the same Chicago office as Toronto-based Slate Asset Management, foreclosed on the loan that financed The Amelia apartments. The unpaid debt at the time was $23 million. This means The Amelia was bought for 8.7% less than its debt in the 2024 foreclosure."
Two recent transactions underscore weakening multifamily values in Oakland. A South Bay investor group purchased The Amelia, an 83-unit Pill Hill complex at 411 29th Street, for $21 million after a 2024 foreclosure that carried $23 million of unpaid debt. ArtHaus Partners and Belay Investment Group foreclosed to acquire nine Lake Merritt-area apartment complexes with $57 million of unpaid debt at the time. Investors and lenders are acquiring Oakland apartments at reduced prices or via foreclosure. The Amelia's purchase price equates to roughly $253,000 per unit, near the low end of East Bay per-unit pricing this year.
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