Libitzky Property Cos. sold a Hayward residential development site for $23.7 million – more than 11 times the $2.1 million that it paid in 1999 for the property.
Public homebuilder TRI Pointe Homes Inc. was the buyer of the site at 199 Filbert Street, which has entitlements for 157 residential units, including 105 townhouses and 52 single-family homes. Buildable home sizes range from 1,342 square feet to 1,908 square feet, according to the property's offering document.
The sale reflected the strong demand for housing in the East Bay, said Kevin Perkins, associate principal at Emeryville-based Libitzky, which controls around 6 million square feet in industrial property.
“The timing was right. The market was hot," said Perkins. “The builders' sentiment is quite strong. We want to take advantage of the opportunity."
Libitzky spent around $300,000 and took about two years to obtain entitlements that converted the site from industrial usage to residential, said Perkins. The company's plan was to flip the property after obtaining residential zoning. Libitzky was previously in contract to sell the property prior to the recession, but “the escrow fell through because the housing market collapsed," said Perkins.
Building-products maker Owens Corning previously leased a 225,000-square-foot warehouse on the site, but vacated the property in December. Owens Corning paid about $75,000 in rent per month. Libitzky's strategy was to lease to a tenant on the site until it was ready to be sold to a residential developer.
TRI Pointe will likely break ground on the new development in the third quarter of 2015, said Perkins. Pricing hasn't been determined, but homes in the area have sold for around $400,000 to $600,000, he said.
TRI Pointe wasn't immediately available for comment.