At a glance
- The price works out to $767,000 per unit, making it one of the steepest apartment purchases in San Francisco since the pandemic, according to Connect CRE, which cited the San Francisco Business Times.
- Stockbridge calls the city home, and this is its second purchase here this year.
- Wood Partners bought the site for $15.4 million in 2017 and finished the building about six years ago.
Stockbridge Capital Group has paid $132 million for Alta Potrero, a 172-unit apartment building at 1301 16th St. in Potrero Hill. The price works out to $767,000 per unit, making it one of the steepest apartment purchases in San Francisco since the pandemic, according to Connect CRE, which cited the San Francisco Business Times.
Stockbridge calls the city home, and this is its second purchase here this year. The Business Times attributes record rents to an AI hiring wave and a thin pipeline of new supply. That squares with what this week's concession data showed: construction starts down, supply tightening, landlords regaining pricing power.
Wood Partners bought the site for $15.4 million in 2017 and finished the building about six years ago. The same developer built the 330-unit Alchemy apartments in San Francisco and other Bay Area communities. From that land price to $132 million, Potrero Hill repriced sharply in roughly a decade.
At $767,000 a unit, today's income alone won't justify the price. The deal only works if rents keep climbing. That is a concentrated bet on one city's tech payrolls, with less cushion than a diversified multifamily portfolio. If the AI hiring wave holds, this trade becomes a benchmark for top-tier Bay Area product. If it cools, the price leaves little room to absorb the miss. For owners of well-located apartments in the city, the trade just set a new asking price.
Reported by the Deals desk from Connect CRE. Published . Corrections