Ivanhoé Cambridge and development partner Veritas Investments have purchased a San Francisco multifamily portfolio for $200 million, the firms said Tuesday.
The Carlyle Group, a Washington DC-based private equity firm, assembled the 450-unit portfolio from 2013 to 2014, according to Real Capital Analytics. Ivanhoé Cambridge, the real estate arm of pension Caisse de dépôt et placement du Québec, partnered with Veritas to acquire the 16 properties, many of which have ground-floor retail.
This is not the first deal where Ivanhoé Cambridge and Veritas have partnered. The duo started buying assets in the San Francisco area in 2014 and now own 45 properties, according to a statement.
“The San Francisco Bay Area’s ecosystem of technology and innovation companies, its university and education centers and its quality of life create a strong magnet for today’s mobile workforce, which is ultimately our resident base,” said Yat-Pang Au, Veritas’ founder and chief executive officer, in a statement Tuesday.
The latest acquisition comes as San Francisco property prices continue a meteoric rise, with sky-high occupancy rates. In the second quarter of 2015, San Francisco’s vacancy rate was just 2.9 percent, according to global real estate services firm Cushman & Wakefield, with one of the highest shares of renters in the country.