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SACRAMENTO-GMH Communities Trust has acquired a 250-unit apartment complex located near the local campus of California State University. GMH, a student and military housing REIT from Newtown Square, PA, paid $20.1 million for the property; about 73% of the price was funded with new 10-year fixed-rate debt.
Royal Riverwood Manor, built in 1979, is a garden-style apartment community consisting of 25 two-story buildings, a clubhouse, swimming pool, fitness center and two lighted tennis courts. A company source tells GlobeSt.com that the property is about 94% leased.
Royal Riverwood is located within two blocks of CSU. It also sits near the Verge, a 288-unit class A student housing community acquired by GMH in March 2005 for $51.4 million.
Miles Orth, head of GMH's student housing division, says Royal Riverwood has been operated conventionally, providing GMH the opportunity to increase ROI by repositioning it as a student housing facility. Improvements will include amenity and services upgrades, including a student lifestyle program.
The property will be managed by the student housing division. With this latest purchase, GMH owns 10,478 student housing units in 55 properties, including five in California.
In addition to its two Sacramento properties, GMH's California properties include a property near CSU in Long Beach, a property near the University of California at Riverside and one near San Diego State University.
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