New Investor Snaps Up Mountain View’s Village Lake Apartments for $145M
A recently formed real estate investment firm has picked up Mountain View’s Village Lake Apartments in a $145 million off-market deal, and the locally based group is looking for more assets to acquire and develop, executives said.
FortBay LLC, in a joint venture with Colony Capital, acquired the 208-unit community at 777 W. Middlefield Road last week from an affiliate of Braddock & Logan, the project’s longtime owner. The price equates to just under $700,000 per unit.
This is the first acquisition for FortBay, but the firm is not lacking in local experience. Its three principals — Perry Hariri, Lance Tate and Tom deRegt — are Bay Area real estate veterans, with backgrounds in the development, acquisition and operating sides of the business.
“We have experience with office, retail, mixed use, but our core competency is definitely residential,” Tate told me over the phone on Monday. “We also have home-building capabilities.”
This is the second major multifamily sale in Mountain View this month. Earlier in December, Singapore-based Mapletree Group paid $738,000 per unit, or $110 million, for the 149-unit Tera apartments at 881 E. El Camino Real. That dollar figure represents the highest price paid in the city on a per unit basis for a multifamily asset.
The sale prices are being driven by an expectation that employers like Google, Apple, LinkedIn and others will continue to add thousands of new jobs to the area, fueling demand for more rental housing. In Mountain View, the city council is trying to green-light additional multifamily projects, but getting them built is expected to take years. Mountain View’s average asking rents at large complexes had risen 9.6 percent over the last year, as of the third quarter, according to research firm Real Answers.
In the Village Lake deal, Eastdil Secured served as FortBay’s financing adviser in the transaction and sourced senior debt from Acore Capital.