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Oakland housing tower near downtown and Lake Merritt is bought

OAKLAND — A housing tower near downtown Oakland and Lake Merritt has been bought in a deal that points to rising real estate values for apartment complexes in this part of the East Bay.

The apartment highrise, located at 1130 Third Ave., was bought for $55.5 million, according to documents filed on Aug. 23 with the Alameda County Recorder’s Office.

The 18-story complex consists of 178 units, primarily one- and two-bedroom apartments.

An affiliate connected to FPA Multifamily, based in the Orange County city of Irvine, bought the apartment complex, according to the county property records and state business documents. Michael “Mike” Earl, chairman of FPA Multifamily, was listed as the principal executive of the affiliate that bought the highrise.

A 178-unit, 18-story apartment tower at 1130 3rd Ave. in the Merritt district near downtown Oakland. 

Kennedy Wilson, acting through an affiliate, sold the housing tower to FPA Multifamily, state and county public records show.

FPA Multifamily declined to discuss the purchase because the company doesn’t comment about its business activities or real estate transactions, an FPA executive said Thursday.

Kennedy Wilson didn’t respond to attempts to contact the real estate firm about its sale of the apartment building.

FPA Multifamily bought the property through an all-cash purchase, the county real estate records show.

Kennedy Wilson bought the residential tower in 2011, paying $31 million for the highrise, according to public documents.

“The property is well located within Oakland, which has experienced a cultural, employment and housing renaissance,” Kennedy Wilson stated in a post on its website. “Many top new restaurants have opened, and new tech companies are relocating to Oakland searching for more affordable space.”

Kennedy Wilson undertook a wide-ranging renovation and a rebranding of the apartment complex.

“The community was upgraded with a new fitness center, poolside internet cafe, upgraded elevators and corridors, new exterior paint and conversion of the maintenance shop to a new leasing office,” Kennedy Wilson stated on its website.

As units were vacated, Kennedy Wilson renovated every apartment.

“New cabinet faces, stainless steel appliances, lighting fixtures, quartz countertops and vinyl plank flooring” were the key features of the interior renovations, Kennedy Wilson said.

A fitness center, pool, spa and dog park are among the amenities in the apartment tower.

All of this work appears to have paid off in a more valuable property than when Kennedy Wilson, which didn’t disclose the cost of the renovations, bought the apartment tower in 2011.

As of June 2022, the assessed value of the housing tower was $36.6 million.

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