Menlo Gate, LLC is pleased to announce that it has closed, Menlo Gate Group Sixteen Holding, LLC. This Offering Group SOLD OUT FROM THE RESERVATION LIST! If you haven’t submitted your Menlo Gate Subscription Reservation Form, you can do so HERE. Our next Offering Group will be coming out shortly and there is already limited space available due to Subscription Reservation submissions.
We received the Menlo Gate Group Sixteen opportunity through our network. This was an off-market transaction. The seller was winding up a trust resolution and wanted to insure consummation of the sale. Accordingly, the seller brought this offer to Menlo Gate at a very attractive sales price to ensure that the deal would go through without any issues. At the close of negotiations, we were able to enter into contract with the seller for a contract price of $5,950,000. This equates to an acquisition price of $425K per door-approximately $75K per door under market.
A review of local comparable listings and sales reveals that this Menlo Gate Offering Group provides for captured equity in the range of $1,050,000. There are multiple closed transactions in Redwood City for well above this per door price in far less desirable locations. The majority of comparable sales in this area are anywhere from $475K to $500K per door, as opposed to the contract acquisition price of $425K per door.
If you follow the Redwood City rental market closely, you are aware of the redevelopment corridors that are taking place on both El Camino and Woodside Road. Any larger parcel properties on these thoroughfares are considered to be “trophy” assets by portfolio owners. Menlo Gate locked down what we consider to be an iconic trophy asset on Woodside Road, “The Woodsider.” We pursued this asset for nearly two years and are proud to have been able to acquire this Redwood City landmark asset for our participants.
Generally, assets in these areas are bought and held for generations due to the rental demand that they generate for their owners. The group is in close proximity to Mid-Peninsula development projects including the Stanford Campus, Facebook’s Willow Campus addition, the Bohannon Park development, and the new Nia Hotel. The Stanford, Bohannon, and Nia Hotel projects have already broken ground and are underway. The new Facebook Willow Campus is expected to be completed by 2021.
The new Stanford development will occupy the old Technology Park in neighboring Redwood City and consist of over 35 acres of new development. Stanford forecasts that the new campus will bring over 3,000 new jobs to the area. Stanford has also dedicated a “trolley” system from the new campus to the revitalized downtown district of Redwood City.
The new Facebook Willow Campus is literally a city unto itself including office, retail, and its own grocery store. The new Bohannon Park development is an eight story office building at the corner of 101 and Marsh Rd. The beautiful Nia Hotel is located next door. A large parking structure and fitness center are also under construction in this area.
Large high end residential developments were also recently completed on both Willow Rd. and Hamilton St. in this area. The Willow Rd. project was entitled and completed by the Mid-Peninsula group whereas the 777 Hamilton project was brought to market by Sequoia’s, William Butler. The recent activity by both these large and respectable builders stands as a strong indicator as to the highly valuable future for real estate in this area. Menlo Gate’s latest acquisition is literally at the epicenter of all these developments!
If you missed this great opportunity, please keep an eye out for Menlo Gate’s next offering. We expect our next group to be published to our participant list within the next couple of months. HERE you can find the location of our recent acquisitions. Please reach out to us via e-mail if you have any questions or to advise us of your level of interest in our next group.