In July of 2008 we witnessed the sale of 23 Napa county multifamily units. For August we see nearly a 50% reduction in sales to 12 units all with "special" attributes which skewed prices upwards and none were true multifamily investor deals. Here is a breakdown:
August 2008 Napa County multifamily sales:
August 2008 average unit sale price- $263,750
6778 Yount Street - $223,750 per unit (8 units)
5200 Wragg Canyon - $325,000 per unit (2 Units)
618 Seminary - $362,500 per unit (2 Units)
In June of this year I commentedon the extreme valuation of this property and how a bank would be hard pressed to lend on this property. I search of tax records reveals the new owners borrowed a meager $600,000 of the purchase price and put down $1,190,000!!! Holy cow!!! The seller Jim Keller purchased the property in September 2002 for $850,000 netting over $1,000,000 on this sale 6 years later after tax depreciation and rental income...not bad. Buying opportunities like the one Jim Keller found in 2002 exist right now in the city of Napa. In 2002 Yountville was depressed and forgotten much like Napa now. Although Napa is going through a massive transformation much like Yountville in 2004-2006. The future Napa can be seen, the likes of Ritz Carlton, Westin, La Toque, Oxbow and many others backed by "smart" money are now pouring into Napa. Multifamily in Napa has never been cheaper when compared to money paid for rents received.
So it is now possible to purchase a Napa Valley multifamily apartment real estate investment with 100% financing and still have positive cash flow after paying principal, interest, taxes, maintenance and management. Coupled with extremely strong rents and an ultra low vacancy rate it makes you wonder why we still don't have more buyers for multifamily.
I am a real estate broker agent at the RE/MAX Napa Valley office RE/MAX Cornerstone I specialize in selling just multifamily apartment investments. My colleague Armando Lincoln 707-299-9779 part of the team handles all real estate commercial and residential that is not multifamily. Over 65% of our sold real estate deals are never advertised. Most are offered to sale only to buyers represented by our team. To gain access to the off market inventory or to learn how we work with buyers contact Mike Bolen for multifamily Mike@MikeBolen.com or 707-254-9999. Contact Armando Lincoln 707-299-9779 for all other commercial and residential ie. homes, land and other real estate opportunities, and Ken Dunbar 707-365-9070 for all commercial leasing needs.
We also work with over 20 investment buyers in an exclusive buyer agency agreement if you are looking to sell no one has more commercial real estate investment buyers than our team.
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