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Norcal portfolio case study.

Investment highlights.
  • Portfolio acquisition of 60 properties in the high-barrier-to-entry Marin County submarket (Northern California)
  • Total purchase price was $436.5M, which included 936 multifamily units and 680K square feet of office space with a value-add profile
  • The portfolio was purchased directly out of bankruptcy, which required working with the restructuring entity, which selected HZ as the stalking horse during the bankruptcy proceedings
  • HZ fully flexed the scale and agility of its integrated platform with Graham Street Realty managing the commercial assets and Misson Rock Residential managing the multifamily assets
  • Ultimately, HZ selected Davidson Kempner Capital Management as its joint venture equity partner while Wells Fargo provided debt financing
  • There was immediate operational and income upside through management improvement and targeted capital expenditures
Property Description
PROPERTY TYPE Multifamily & Commercial Office
PROPERTY CLASS B & C
LOCATION Marin & Sonoma Counties, CA
AVERAGE VINTAGE 1980
TOTAL UNITS/SF 936 Multifamily Units
681,631 SF Office
Project and Investment Return Metrics
PURCHASE PRICE $436,500,000
DEBT $307,000,000
OCCUPANCY 91% Multifamily
69% Office
CAP RATE 4.5%
TARGET HOLD PERIOD 3-5 Years
GROSS IRR 18%

Norcal portfolio examples.

photo of apartment community exterior with grass lawn

Marin Heights Apartment Homes

photo of apartment community exterior building and parking

Fairway Apartments

aerial photo of building with red roof located next to highway overpass

Gateway Business Center

photo of a commercial building exterior with North Bay Center signage

North Bay Business Center

Let’s talk.

Pete Casey

Managing Director, Capital Markets

415-561-6800
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