B
rookfield has sold its L Seven apartment complex in San Francisco's SoMa neighborhood to Waterton for $177.5 million, according to public records. The 410-unit property, comprising seven six-story buildings across a full city block, translates to $433,000 per unit. This deal nearly doubles Waterton's multifamily portfolio in the Bay Area, bringing their total units to 970.

    L Seven is a relatively new development, having begun pre-leasing in 2016 and completing construction in 2017. The property features a mix of studios, one- and two-bedroom apartments, as well as two-story townhomes, with over 30,000 square feet of ground-floor commercial space. Units boast amenities like floor-to-ceiling windows, private balconies, in-unit washer/dryers, and direct-access garages.

    Waterton plans to implement a light value-add program at L Seven, focusing on enhancing underutilized amenity spaces while prolonging the asset's life. The company is optimistic about San Francisco's recovery and continued appeal to renters, citing positive momentum in the city's post-pandemic recovery. With limited supply under construction and strong long-term fundamentals, Waterton sees San Francisco as a high-growth market.

    After the sale, Brookfield retains two other apartment complexes in SoMa, The George and Mosso. This deal comes on the heels of Waterton announcing the closure of its $1.73-billion Venture XV multifamily value-add fund, which will target distressed opportunities and traditional value-add properties.