Ballast has snapped up the Grosvenor Atrium in Pacific Heights for $35.3 million, locking down an 80-unit rental prize in one of San Francisco's toughest neighborhoods to break into. The deal, which closed May 6, adds another big-ticket multifamily property to Ballast's growing local portfolio and stands out in a part of town where large buildings rarely hit the open market.
According to the San Francisco Business Times, Ballast closed at $35.3 million after the asset - long tied to the Grosvenor name - was marketed earlier this year.
Building and amenities
Built in 1975, the four-story Grosvenor Atrium features a mix of 80 one-, two- and three-bedroom apartments and is hitting the market for the first time in roughly half a century, per ConnectCRE. The property is about 97% occupied and comes with two gated parking garages, on-site laundry, two elevators and a full gym that includes a sauna and whirlpool.
Sellers have recently tackled key capital projects - among them new fire-alarm and suppression systems, dual-pane windows and high-efficiency water heaters - a set of upgrades that Ballast said trims its near-term capital needs.
Why buyers are circling Pacific Heights
Investors have been tiptoeing - and in some cases sprinting - back into San Francisco apartments as rents and demand rebound, a shift that is pushing buyers toward tightly held, supply-constrained pockets like Pacific Heights, according to CoStar News. Ballast has been among the most active players in recent months, scooping up nearby multifamily properties as vacancy tightens across the city.
Ballast's strategy
"Pacific Heights is the kind of neighborhood where ownership tends to be measured in decades, not years, which is exactly why opportunities like this carry so much weight," Ballast co-founder Ryan Brewer said, as reported by ConnectCRE.
Pacific West Group directors served as listing agents for the seller, as noted in the listing and coverage. Ballast has described the acquisition as a textbook fit for its focus on well-located, well-built multifamily properties in neighborhoods where new supply is hard to come by and long-term holds are the norm.
