Central Coast Multifamily Asset Trades for $75M, Signals Affordable Housing Shift

Event summary

  • Marcus & Millichap’s IPA division brokered the $75 million sale of Hancock Terrace, a 272-unit multifamily property in Santa Maria, California.
  • The property traded at $275,735 per unit, representing a significant transaction for Santa Barbara County.
  • The seller, HT Partners, L.P., was the original developer of the 2016-built asset.
  • The buyer, Step Up Housing, intends to convert the property to affordable housing, in partnership with Sack Capital Partners and Align Financing Partners.

The big picture

The sale of Hancock Terrace, a relatively large suburban core asset, demonstrates ongoing investor appetite for multifamily properties in California, even as the state grapples with affordability challenges. The buyer’s plan to convert the property to affordable housing reflects a broader trend of institutional investors incorporating social impact considerations into their real estate strategies. This $75 million transaction, facilitated by IPA, is a notable event within the context of the broader $50.8 billion in commercial real estate sales handled by Marcus & Millichap in 2025.

What we're watching

Affordability Trends
The conversion to affordable housing suggests increasing investor interest in this sector, potentially driven by government incentives and social impact mandates, which could impact cap rates and competition for similar assets.
Capital Flows
The involvement of Sack Capital Partners and Align Financing Partners indicates continued institutional capital seeking exposure to the California multifamily market, despite broader economic uncertainties.
Brokerage Dynamics
IPA’s emphasis on a ‘rigorous vetting process’ highlights the ongoing competition among brokerage firms to secure deals and underscores the value placed on certainty of execution in large transactions.

Related topics

Affordable Housing