Marcus & Millichap’s Institutional Property Advisors (IPA) announced the closing of Hancock Terrace, a 272‑unit multifamily complex in Santa Maria, California, for $75 million. The transaction values the property at $275,735 per unit and was completed with Step Up Housing, in partnership with Sack Capital Partners and Align Financing Partners. The deal was brokered by IPA’s Kevin Green, Joseph Grabiec and Gregory Harris, who represented the seller, HT Partners, L.P. and secured the buyer’s financing through Align Financing Partners.
The sale is one of the largest suburban‑core assets sold in Santa Barbara County in the past 25 years, adding a high‑unit‑count property to MMI’s institutional portfolio. IPA’s focus on institutional clients is reinforced by this transaction, which showcases the division’s ability to handle sizable deals and deliver value to investors.
Step Up Housing plans to convert 75% of the units to affordable housing, a move that aligns with Santa Maria’s rapid population growth and the increasing challenge of homeownership. The conversion strategy reflects broader market trends toward affordable rental options in California’s growing cities.
The transaction comes on the heels of MMI’s strong Q4 2025 results, which included an EPS of $0.34, a 55% year‑over‑year increase in net income, and revenue of $755 million—an 8.5% rise from 2024. The sale complements the company’s momentum in middle‑market multifamily assets and supports its strategy to capture recovery and expand financing capabilities.
The deal underscores continued demand for middle‑market multifamily properties in California and highlights the growing role of affordable housing developers. It also signals MMI’s capacity to close large transactions and support institutional investors seeking stable, income‑generating assets.
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