December 16, 2021 Hamilton Zanze, Graham Street Realty & Davidson Kemper Acquire 60-Property Portfolio in Northern California

SAN FRANCISCO, Dec. 16, 2021 – Hamilton Zanze (HZ) & Graham Street Realty (GSR), two affiliated Bay-Area-based national real estate investment firms and Davidson Kempner Capital Management (Davidson Kempner), a New York-based investment management firm, have closed on the acquisition of a 60-property portfolio spread across Marin and Sonoma counties in California. The properties comprise more than 1.4 million square feet of commercial and multifamily space and were acquired for a total purchase price of $436.5 million.

The diverse portfolio’s acquisition closed on December 15th. It was transacted through the Federal Bankruptcy Court, where the properties have been held since late 2020. The group was named the winning bidder after the court’s open bidding process was held in September.

Due to the firms’ expertise in the ownership and successful management of both multifamily (HZ) and commercial real estate (GSR), the group was uniquely positioned to absorb the large, multi-faceted portfolio amongst competing bidders. The properties range in size from 3,500 square feet up to 85,000 square feet, encompassing a total of 935 residential units and approximately 680,000 square feet of commercial space.

“We are enthusiastic about the opportunity to bring these properties into our portfolios and deliver successful investment results for our investing partners,” said David Messing, Managing Principal of Graham Street Realty. Ashlee Cabeal, Chief Financial Officer of Hamilton Zanze added, “We look forward to investing over $50 million of capital into these properties, which are located in our own communities.” Many HZ employees and executives live in Marin County, and most of the multifamily assets represent critical workforce housing, which will receive over half of the projected capital investment to provide safe and appealing housing to households of all income levels.

The operation of the 60 properties will be split between affiliated property management firms Mission Rock Residential, overseeing the multifamily assets, and Paramount Property Company, managing the commercial office buildings. The properties were previously owned by Professional Financial Investors.

The Hamilton Zanze team’s personal and professional roots have been based in the Northern California real estate community, with principals Mark Hamilton, Tony Zanze and Kurt Houtkooper all beginning their real estate careers in the region more than 30 years ago. Throughout the firm’s growth and expansion across the country, the Bay Area has remained the organization’s headquarters since it was established in 2001.

“Closing out Hamilton Zanze’s 20th year in operation with this exciting acquisition right here in our hometown has been momentous for us,” said Kurt Houtkooper, the company’s Chief Investment Officer and President. “We started here and have grown here, and we are looking forward to the immediate growth opportunity the addition of this portfolio will bring to our teams’ collective work in the Western region.”

In a time where many organizations have reengaged with their local marketplaces as a result of the COVID-19 pandemic, HZ and GSR anticipate this portfolio acquisition will provide a strengthening of their local presence in the Bay Area. GSR already owned 5 commercial office properties in the Bay Area before the closing of this transaction, and further HZ investment is strategically planned in the region in the years to come as well.

A complete list of property addresses is available upon request.