OAKLAND — A new housing tower in Oakland has been bought by a local buyer in a deal that topped $90 million — although the transaction indicates the East Bay apartment market continues to wobble.
The apartment tower, located at 17th and Broadway in downtown Oakland, was bought for $99 million, according to documents filed on Dec. 20 with the Alameda County Recorder’s Office.
254-unit, 34-story apartment tower at 447 17th St. in downtown Oakland. (Google Maps)
Three Steps Properties, an East Bay real estate firm that acted through an affiliate, is the new owner of the 254-unit housing highrise, the Alameda County public documents show.
At the time of the purchase, the Three Steps Properties affiliate also landed a $92.3 million loan from MetLife Real Estate Lending, the Alameda County property documents show.
The 34-story housing tower that Three Steps bought is located at 447 17th St., according to county real estate records.
Quarterra Multifamily, which is a spinoff of one of the subsidiaries of housing titan Lennar Group, sold the highrise to the Three Steps Properties entity. Lennar Multifamily developed the downtown Oakland tower.
The just-bought highrise opened in 2019 when it began accepting its first residents.
Oakland-based Three Steps Properties, the new owner of the apartment tower, is active in the local real estate market and owns several apartment complexes in the East Bay, according to the company’s website.
The buyer’s properties include several in Oakland and one in Richmond, the real estate firm’s website says.
The deal shows that Three Steps bought the 17th and Broadway apartment highrise for considerably less than the tower’s assessed value.
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As of January 2024, an estimate from the Alameda County Assessor’s Office placed an assessed value of $209.8 million on the apartment complex.
This means that Three Steps Properties bought the apartment tower for a price that was 53% below the latest assessed value for the parcel.
Fading property values can play a big factor in the assessed value of a parcel.
If assessed values decline, property taxes might also drop, which could squeeze the flow of real estate revenue to California cities, counties, school districts, special districts and other government agencies whose funding sources include property taxes.
“17th and Broadway’s contemporary apartments offer unprecedented lifestyle amenities,” stated a post on the Apartments.com website regarding the property.
The website also states that the apartment tower offers a considerable number of amenities that are available to all residents.
“Relax on the outdoor pool terrace, then gather with friends at the 34th-floor, open-air lounge for a phenomenal view of the city skyline,” the Apartments.com post about the tower states.