Big East Bay apartment property deal hints at fading residential market

UNION CITY — An East Bay apartment complex with hundreds of units has been bought in a deal that points to an uncertain multifamily residential market in this part of the Bay Area.

The Union Flats, a 243-unit multifamily property in Union City, has been bought for $81.6 million by an alliance of California real estate investors, according to documents filed on March 28 with the Alameda County Recorder’s Office.

Beverly Hills-based Camden Pacific Partners and San Francisco-based The Roxborough Group teamed up through an affiliate to buy the apartment complex.

An alliance headed up by Bay Area real estate firms Windflower Properties and CityView developed The Union Flats, which opened to tenants in 2018.

Windflower and CityView were also the sellers of the apartment complex, which was built through a cost-savings process known as modular construction.

The Union Flats is within walking distance of a BART stop. The apartment complex is at 34588 11th Street, about two blocks from the Union City BART Station.

The property also offers amenities such as a barbecue, outdoor dining area, swimming pool, fitness center, fire pit, a communal kitchen, dog spa and a lounge, according to the Apartments.com site.

Yet even with these advantages, the purchase price hints at weakness in the East Bay apartment market.

The $81.6 million purchase price for The Union Flats is 18.4% below the $100 million value of the apartment complex in January 2024 as estimated by the Alameda County Assessor’s Office.

The impact of shifting property values extends well beyond a survey of the local real estate economy. Property value trends can impact revenue for an array of public agencies.

If real estate values turn soft in a jurisdiction, that could crimp a crucial revenue stream for city, county and regional agencies, and school districts.