AvalonBay Nears Sale of Sunset Towers in San Francisco

A venture led by Alexander Shalavi with Bridge Capital Partners Inc. has AvalonBay Communities’ Sunset Towers under contract, the San Francisco Business Times reported. Overlooking Golden Gate Park in San Francisco, the 243-unit property was listed earlier this summer, drawing bids above $100 million.

The pending sale, expected to close in January, reflects a broader rebound in San Francisco’s apartment market as investors respond to tightening rental demand, reported the Business Times. Multifamily investment volume is up more than 35% year over year, according to data from Avison Young. Absorption has climbed back to levels last seen in 2022.

Although investors are looking beyond apartments in San Francisco, multifamily remains a steady draw, according to the Business Times. Sunset Towers reflects that momentum. With few new market-rate projects advancing in the city, investors are focusing on existing, well-located properties in supply-constrained neighborhoods. Moreover, apartments overlooking Golden Gate Park are scarce.

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