WALNUT CREEK — A big apartment complex in downtown Walnut Creek has been bought by a veteran real estate firm in a deal that tops $50 million and points to a profit for the property’s developer.
The Rise Walnut Creek, an apartment property at the corner of North California Boulevard and Cypress Street in the East Bay city’s downtown district, has been bought by an affiliate of Hines, one of the nation’s most experienced and savvy real estate firms.
The Hines affiliate paid $57 million for the apartment complex, which is located at 1380 North California Blvd., according to documents filed on May 17 with the Contra Costa County Recorder’s Office.
“The Rise Walnut Creek’s amenity-rich location, proximity to transit, and strong leasing fundamentals make it an attractive investment,” said Shawn Hardy, managing director at Hines.
Texas-based Hines bought the apartment complex through an all-cash deal, the county records show.
Rescore Property, a Florida-based real estate firm, developed the apartment complex, according to the company’s website.
The Rise totals 97 units, the Rescore website shows. The site also has a ground-floor commercial space that a fitness center might occupy, according to an on-site representative for the apartment complex.
Institutional Property Advisors brokers Alex Tartaglia, Stanford Jones, Philip Saglimbeni and Salvatore Saglimbeni arranged the deal. IPA is a division of commercial real estate firm Marcus & Millichap.
“Walnut Creek’s suburban setting and lifestyle amenities make it one of the Bay Area’s most sought-after cities,” Tartaglila said. “The Rise Walnut Creek provides residents with an appealing, more affordable housing option versus homeownership in a city where the median home price is more than $1.4 million.”
It appears Rescore managed to recoup its basic investment in the property, this news organization’s review of multiple county documents shows.
In 2015, Rescore paid $8.8 million to buy the project site from McDonald’s Corp., which had a restaurant on that site for numerous years.
In 2018, Barings Credit Real Estate Strategies provided Rescore with $38.5 million in construction financing for the property.
The $57 million the Hines affiliate paid for The Rise would more than cover Rescore’s combined $47.3 million in costs to buy the McDonald’s restaurant site and pay off the construction loan’s original amount.
However, it wasn’t known what other costs might be involved during the years Rescore owned The Rise Walnut Creek.
The Rise Walnut Creek was completed by Rescore in 2023, making it a brand-new arrival to Walnut Creek’s apartment market.
“It is the newest and highest quality multifamily building in downtown Walnut Creek, a submarket in which we have high conviction,” Hardy said.
