Tralee Village Apartments is a 130-unit residential and retail complex located at 6955 Dublin Boulevard in Dublin.
DUBLIN — A large apartment complex in Dublin has been purchased for more than $45 million, a deal that signals weakness in parts of the Bay Area residential real estate market.
Dublin's Tralee Village Apartments have been acquired by an affiliate of Cityview, a long-established property investment and development company.
According to documents filed June 18 with the Alameda County Recorder's Office, a City View affiliate has purchased the 130-unit apartment complex at 6599 Dublin Boulevard in Dublin for $46 million.
“Tralee Village was an excellent opportunity to acquire a well-located, high-quality asset in a popular submarket that has seen significant population and employment growth since the pandemic,” said Sean Barton, chief executive of Cityview. The deal was arranged through Jason Parr, senior managing director at commercial real estate firm Berkadia.
According to county public records, an affiliate of City View received a $33.5 million loan from Invesco Commercial Real Estate Finance Investments when it purchased the Tralee Village Apartments.
The $46 million price tag signals weakness in the Bay Area residential real estate market at a time when interest rates are soaring and inflation is surging.
San Mateo-based real estate investment firm J.B. Matheson purchased the Tralee Village Apartments for $55 million in 2017, according to county public records.
This means that flats in Tralee Village are now around 16% less valuable than they were seven years ago.
In the wake of surging interest rates and inflation, Bay Area apartments are selling for somewhat less than they were before interest rates and consumer prices soared, according to an unscientific study of high-profile transactions involving apartment complexes in the area.
Based on certain Bay Area transactions completed in the last three months of 2024 and 2023 after interest rates spiked, the average price of apartments sold was $520,700 per unit.
A spot check by this news organization of large apartment transactions in the South Bay and East Bay suggests that the price per unit in 2024 will be about 5% lower than what it typically will be before interest rates spike in 2023.
Skyrocketing interest rates are making it harder for apartment buyers to justify their purchase unless the price of the housing estate is cheap enough, which means higher monthly mortgage payments if buyers finance their purchase.
The purchase price for the Tralee Village apartment complex will be just over $353,800 per unit.
Despite uncertainty surrounding the Bay Area real estate industry, City View believes there are many benefits and opportunities for the Tralee Village complex.
“With an average occupancy rate of 95 per cent to date and strong market fundamentals, Tralee Village fits perfectly into our strategy of acquiring communities at significantly below replacement cost in markets with limited supply and high barriers to entry,” Mr Barton said.
Tralee Village was built in 2011. The complex offers one, two and three bedroom units set across three storeys.
The apartment complex will also feature a “resort-style pool,” a spa, a fitness studio, a nearby park, a children's play area and a residents' lounge with Wi-Fi.
“City View is planning a complete renovation of the interior and common areas, including replacing unit flooring, lighting, kitchen and bathroom countertops and fixtures,” City View said in an email to this news organization.
Tralee Village will also have 30,000 sq ft of ground floor retail.
“We look forward to reimagining Tralee Village and elevating its design, finishes and amenities to a level consistent with newer Class A communities,” Mr Burton said.