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HZ News

April 16, 2019

SF-based real estate group makes second KC acquisition in as many months

Hamilton Zanze was recently featured in the Kansas City Business Journal:

Hamilton Zanze & Co., a San Francisco-based real estate investment firm has acquired its second Kansas City-area apartment complex since March.

The company bought Cornerstone Apartments in Independence in a deal that closed on April 4. Hamilton Zanze did not disclose the price or the seller.

Located at 3950 S. Jackson Drive near Interstates 70 and 470, the 420-unit complex was built in 2004 and includes one- and two-bedroom units. The company did not disclose the occupancy for Cornerstone Apartments. The overall vacancy rate in the Independence submarket was 3.7 percent in the fourth quarter, with an average rent of $739, according to NorthMarq.

Founder and CEO Mark Hamilton told the Kansas City Business Journal that the company has been looking at the market for several years and finally found the right opportunities. Those two acquisitions may be followed by additional deals, he said.

“We certainly have remaining interest in picking up more properties in KC,” Hamilton said.

Read the full article at bizjournals.com, and see more coverage at Connect Chicago, Multi-Housing News, and RE Business Online.



April 5, 2019

Hamilton Zanze Enters Missouri with Cornerstone Apartments Acquisition

INDEPENDENCE, MO – April 5, 2019 – San Francisco-based real estate investment firm Hamilton Zanze (HZ) has acquired the 420-unit Cornerstone Apartments in Independence, MO in the Kansas City metropolitan area. The purchase closed April 4th.

The 14-building community was built in 2004 and is located in close proximity to Interstate 70 and Independence Center Mall, providing immediate access to dining, shopping, entertainment, and five nearby universities. Cornerstone offers a mix of one- and two-bedroom units well-suited for both individual and family occupancy.

“Cornerstone Apartments represented an opportunity to acquire a well-located asset at an attractive discount to its replacement cost,” said David Nelson, Hamilton Zanze’s managing director of acquisitions. “Kansas City has been a target market for Hamilton Zanze in the past two years, and we will continue to look for further opportunities throughout the Kansas City metro in the months to come.”

The property features a 24-hour fitness center, a heated indoor and outdoor year-round pool, and a large whirlpool spa. HZ plans to focus on enhancing the community’s business center and clubhouse, in addition to adding a dog park and package storage system.

The apartment units feature expansive floor plans, master baths with separate showers and bathtubs, and cherry cabinetry. All units feature private patio areas or balconies. HZ plans to add faux-wood flooring in living spaces, new stainless steel or black appliances, and new lighting fixtures.

Property management responsibilities will be transferred to Mission Rock Residential, a Denver-based affiliate company of HZ.

Cornerstone Apartments is located just 20 minutes from downtown Kansas City. Since 2000, over $6 billion of public and private projects have been completed in the metro area, with population growth of roughly 120,000 from 2010 to 2017. The region ranked in the top-15 North American cities for growth in the technology sector from 2011 to 2016, with a 41.8% increase in tech employment that outpaced major tech hubs including Los Angeles, Toronto, Boston, Atlanta, and Dallas. Strong economic and population growth are likely to continue, supporting the metro as a prime market for multifamily investment.

To learn more about Cornerstone Apartments, please visit www.cornerstoneapartmenthomes.com.

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ABOUT HAMILTON ZANZE
Hamilton Zanze (HZ) is a private, San Francisco-based real estate investment company that owns and operates apartment communities. Since its founding in 2001, Hamilton Zanze has acquired over $3.9 billion in multifamily assets primarily in the Western, Southwestern, and Eastern U.S. The company currently owns and operates 85 properties (20,186 units) across 16 states. For additional information, visit www.hamiltonzanze.com.



March 8, 2019

Hamilton Zanze Buys Suburban Kansas City Community

Hamilton Zanze’s acquisition of The Boulders at Overland Park was recently covered by Multi-Housing News:

Hamilton Zanze has acquired Metcalf Village Apartments the Kansas City suburb of Overland Park, Kan., from a private owner. The 272-unit apartment community, which will be rebranded The Boulders at Overland Park Apartments, changed ownership for $40.4 million, according to data provided by Yardi Matrix.

Property management responsibilities will be assumed by Mission Rock Residential, a Hamilton Zanze affiliate company expanding on its Midwestern presence.

Located at 16201 Travis St., the property is situated close to Highway 69 and within the Blue Valley School District, one of the best-performing school districts in the nation.

“This community represented a great opportunity to buy new, stabilized product below replacement cost thanks to robust local market momentum,” said David Nelson, Hamilton Zanze managing director of acquisitions, in prepared remarks. “Overland Park has been a target market for our acquisitions team, and we are excited to have found a perfect acquisition to fit our criteria.”

Read the full story at MultiHousingNews.com and see more acquisition coverage at GlobeSt.com



March 6, 2019

Hamilton Zanze Enters Kansas with Overland Park Acquisition

Overland Park, Kansas – March 6, 2019 – San Francisco-based real estate investment firm Hamilton Zanze (HZ) has acquired the 272-unit Metcalf Village Apartments in Overland Park, Kansas, rebranding the community as Boulders at Overland Park Apartments. The purchase closed February 28.

The 261,862-square-foot community was built in 2017 in the Blue Valley School District — one of the best performing districts in the nation. The Boulders at Overland Park offer a mix of one-, two-, and three-bedroom units well-suited for both single and family occupancy.

“This community represented a great opportunity to buy new, stabilized product below replacement cost thanks to robust local market momentum,” said David Nelson, managing director of acquisitions for Hamilton Zanze. “Overland Park has been a target market for our acquisitions team, and we are excited to have found a perfect acquisition to fit our criteria. We look forward to further growing our presence in Kansas in the years to come.”

The community is located close to Highway 69 at 16201 Travis Street, Overland Park, Kansas 66085. It features a 24-hour fitness center and an expansive outdoor saltwater pool, and HZ plans to execute only minor community improvements due to its newer construction. Planned projects will include landscape enhancements and improved outdoor lighting for wayfinding and ambiance. The individual units feature state-of-the-art appliances, granite countertops, wood vinyl floors, and large, efficient dual pane windows.

Property management responsibilities will be transitioned to Mission Rock Residential, a Denver-based affiliate company of HZ.

The Boulders at Overland Park Apartments are located just 30 minutes from the state capital of Kansas City. Since 2000, over $6 billion of public and private projects have been completed in the metro area. The city’s constant population growth, developing transportation system, and solid economic fundamentals can all be credited for making the region a prime target for multifamily and business investment.

To learn more about the Boulders at Overland Park Apartments, please visit www.bouldersatoverlandpark.com.

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ABOUT HAMILTON ZANZE
Hamilton Zanze (HZ) is a private, San Francisco-based real estate investment company that owns and operates apartment communities. Since its founding in 2001, Hamilton Zanze has acquired over $3.3 billion in multifamily assets primarily in the Western, Southwestern, and Eastern U.S. The company currently owns and operates 83 properties (19,340 units) across 14 states. For additional information, visit www.hamiltonzanze.com.



February 15, 2019

Bay Area Investor Hamilton Zanze Sells Salt Lake-Area Apartment Community

Salt Lake City, UT – February 15, 2019 – Multifamily real estate investment firm Hamilton Zanze is pleased to announce the sale of the Overlook at Sunset Point Apartments in Layton, Utah, north of Salt Lake City. The deal closed on January 23, 2019.

The community, which includes 430 units across 169,168 square feet, was 93% occupied at the time of sale.

“Salt Lake City has great market fundamentals and continues to grow stronger,” said Ashlee Cabeal, Hamilton Zanze’s senior director of transactions. “Overlook is a true testament to our value-add expertise. We are elated with the outcome of Overlook and will look to grow our presence in Salt Lake City.”

The Overlook at Sunset Point community was built in 1985 at 2955 North 400 West, just 30 minutes from the Utah State Capitol. Hamilton Zanze purchased the property in 2008. The rental units range from studios to two-bedroom options and were renovated during Hamilton Zanze’s ownership to include updated black appliances, new cabinet fronts, resurfaced countertops, and faux wood flooring within select units. The community rests on a hilltop and offers views of the metro area and the nearby Great Salt Lake.

Located in Davis County, the community benefits from easy access to the region’s thriving economy and serves as a prime opportunity for value-add rental opportunities. Over 175,000 jobs lie within a 15-mile radius of the Overlook, and key industries clustered in the area include aerospace and defense, energy and natural resources, software, and healthcare. Davis County is also home to Hill Air Force Base and the Falcon Hill Aerospace Research Park, a $1.5 billion, 550-acre project that is one the largest private commercial project of its kind in Air Force history.


ABOUT HAMILTON ZANZE
Hamilton Zanze (HZ) is a private, San Francisco-based real estate investment company that owns and operates apartment communities. Since its founding in 2001, Hamilton Zanze has acquired over $3.8 billion in multifamily assets primarily in the Western, Southwestern, and Eastern U.S. The company currently owns and operates 83 properties (19,340 units) across 11 states. For additional information, visit www.hamiltonzanze.com.



February 6, 2019

Apartment Sales Up 18%; CBRE Still on Top

Hamilton Zanze was featured in Real Estate Alert’s recent apartment market update:

Sales of apartment properties soared 18% last year, blowing past the previous record as the multi-family sector became commercial real estate’s most-active segment.


A total of $110.2 billion of large rental properties traded, up from $93.5 billion the year before, according to Real Estate Alert’s Deal Database. The tally was well above the previous high-water mark of $96.9 billion set in 2016 — and more than double the $51.8 billion peak of the previous cycle.

Capitalization rates — especially on value-added deals — in many markets have compressed to levels well below historical averages, as bidding contests have driven up prices. But those valuation gains are expected to slow, market experts said, making buyers more reliant on rent growth to meet their return goals.

There are also concerns about interest-rate volatility, after recent swings in the benchmark 10-year Treasury rate. “We’re looking to achieve yield for our investors, and to have that yield eaten by debt service is obviously a concern,” said David Nelson, managing director of acquisitions at Hamilton Zanze of San Francisco.

Similar concerns were present at the beginning of last year, but didn’t prove strong enough to hamper trading. And some of them appear to be easing. The Federal Reserve has signaled a pause in rate increases. Construction is projected to be moder- ate this year and fall subsequently. Meanwhile, the renter pool continues to grow, increasingly populated by millennials and empty nesters.

The upshot: Brokers are reporting strong pipelines, and in- vestment shops plan to keep deploying capital into the sector.

“We did about $525 million on the acquisitions side last year,” Nelson said, “In the first quarter of 2019 we’re going to close on approximately $325 million, so we’re off to a very fast start.”

In some cases, buyers are shifting their strategies to adapt to market trends. Hamilton Zanze historically focused on value- added properties, but has recently turned to core-plus deals. “Value-added cap rates have compressed a lot more than core- plus cap rates,” said Nelson. “It’s been incredibly competitive, and we weren’t able to get the returns that we wanted in the value-add space.”

Read the full story at REAlert.com



January 29, 2019

Hamilton Zanze Completes Sale of The Pearl at Spring Creek in Albuquerque

Albuquerque, NM – January 29, 2019 – San Francisco-based real estate investment firm Hamilton Zanze (HZ) sold The Pearl at Spring Creek Apartments in Albuquerque, NM on December 19, 2018.

Pearl at Spring Creek Apartments is located just seven miles southeast of Downtown Albuquerque in the Siesta Hills neighborhood. Situated along Gibson Boulevard SE and Interstate 25, the property is near major retail, dining, entertainment and employment opportunities in the downtown area. HZ purchased the property in 2007.

Built in 1975, The Pearl at Spring Creek Apartments comprises 320 one- and two-bedroom units. HZ recorded an impressive occupancy rate of 95.8% at the time of the disposition, and a 4.8% increase in new lease rents during Q3 2018.

During its ownership, HZ added significant value to the property through a number of marketing initiatives, including a new website and targeting nearby University of New Mexico students to shift the demographics and strengthen occupancy. Unit renovations included balcony landing repairs and repainting, window and sliding glass door repairs, lighting enhancements, and redecoration of model units.

Forbes recently named Albuquerque as one of the top-100 U.S. cities for both Cost of Doing Business and Education. Albuquerque is centrally located in the New Mexico Technology Corridor, a concentration of high-tech private companies and government institutions along the Rio Grande. Favorable forecasts for rent and job growth provided HZ an opportune time to sell the property.

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ABOUT HAMILTON ZANZE
Hamilton Zanze (HZ) is a private, San Francisco-based real estate investment company that owns and operates apartment communities. Since its founding in 2001, Hamilton Zanze has acquired over $3.8 billion in multifamily assets primarily in the Western, Southwestern, and Eastern U.S. The company currently owns and operates 83 properties (19,340 units) across 13 states. For additional information, visit www.hamiltonzanze.com.



January 5, 2019

Behind the Deal: Bay Area firm sees value in ABQ market after selling apartment complex

Hamilton Zanze’s disposition of Ventana Canyon Apartments was recently covered by Albuquerque Business First:

The co-founder of a San Francisco-based real estate investment firm that recently sold an apartment complex in Albuquerque said the city has become a strong seller’s market. 

Hamilton Zanze sold Ventana Canyon Apartments in northwest Albuquerque for $32,581,658 to Seattle-based Thayer Manca Residential in November. 

Hamilton Zanze Co-Founder Mark Hamilton said the firm held onto the property nearly five years longer than it had anticipated due to a dip in the Albuquerque real estate market. He said that was a result of the federal government sequestration in 2013, which lowered occupancy and population rates.

“So we went into bunker mode,” Hamilton said. “We made considerable progress, back to where we could sell it. Our hold on the property was closer to 12 years; a lot of that was because of conditions no one was expecting but still, we saw good results.” The year Hamilton Zanze bought the property, 2006, the national real estate market was going through an “extremely challenging” time, as Hamilton put it, but the Albuquerque market held up surprisingly well.

Hamilton Zanze still owns two apartment complexes in the area, one in Rio Rancho and the other off Tramway Boulevard. The firm sold The Pearl at Spring Creek on Gibson Boulevard in late 2018 for an undisclosed price. Hamilton Zanze has owned eight properties in Albuquerque. 

Read the full story at Albuquerque Business First.



December 4, 2018

Bay Area Value-Add Investor Hamilton Zanze Celebrates Sale of 100th Multifamily Property

SAN FRANCISCO – December 4, 2019 – San Francisco-based real estate investment firm Hamilton Zanze (HZ) is pleased to announce the sale of its 100th multifamily property, Ventana Canyon Apartments in Albuquerque, New Mexico. The deal closed November 29th.

As a value-add real estate investment firm, HZ has been involved in the acquisition, improvement, and disposition of more than $3.5 billion worth of assets since its founding in 2001. HZ purchased a total of 182 properties in that time, with a different configuration of private and institutional investing partners behind each individual deal.

“With each new acquisition and each disposition, our team has built a highly strategic investment approach backed with a constant focus on foresight and location-based market analytics,” said Mark Hamilton, CEO and co-founder of Hamilton Zanze. “As we close out 2018 with this latest disposition, our one hundredth, I couldn’t be any prouder of the team of incredible minds we have working on behalf of our investors.”

Ventana Canyon Apartments was built in 1999 and comprises 264 apartment units. Hamilton Zanze owned the community for 11 years. During this time, the company added value by implementing several environmental sustainability upgrades, adding new exercise equipment and playgrounds, and tackling deferred maintenance issues such as roof repairs, pool re-plastering, retaining wall repairs.

With properties in 22 major metro areas and 13 states, the firm has amassed a broad knowledge of housing demands and insights into the multifamily market across different economic cycles.

Hamilton Zanze’s current portfolio includes 83 properties and nearly 20,000 housing units. To learn more about the company, please visit www.hamiltonzanze.com.

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ABOUT HAMILTON ZANZE
Hamilton Zanze (HZ) is a private, San Francisco-based real estate investment company that owns and operates apartment communities. Since its founding in 2001, Hamilton Zanze has acquired over $3.3 billion in multifamily assets primarily in the Western, Southwestern, and Eastern U.S. The company currently owns and operates 82 properties (19,428 units) across 13 states. For additional information, visit www.hamiltonzanze.com.



November 5, 2018

Copper Mill Apartment Complex in Western Henrico Sells for $33 Million

Hamilton Zanze’s acquisition of Copper Mill Apartments was recently covered by the 

Copper Mill Apartments, a 192-unit complex in western Henrico County, has been sold to a California-based real estate investment firm for $33 million.

San Francisco-based Hamilton Zanze acquired the complex, which is off West Broad Street about a quarter-mile east of Pemberton Road.

“Copper Mill represented an opportunity to buy a well-located, value-add asset at a favorable cap rate,” said David Nelson, managing director of acquisitions for Hamilton Zanze.

Hamilton Zanze plans to renovate 25 percent of the units to include stone counters, backsplashes, lighting fixtures, cabinet pulls, flooring, and replacement kitchen cabinets. An additional 50 percent of the units will receive a lighter renovation with resurfaced counters and the addition of new appliances and cabinet faces. The company also will add a dog park and other enhancements.

Property management responsibilities have been turned over to Mission Rock Residential, a Denver-based affiliated company to Hamilton Zanze.

“We are excited to continue expanding our presence in the Richmond MSA and will continue to look for further opportunities this year,” Nelson said.

Read the full story at Richmond.com.