(Read more on the multifamily market.)
SANTA ROSA, CA-Essex Property Trust has acquired Harvest Park Apartment Homes, a 104-unit apartment community here from Harvest Park, Inc., a private regional development company that built the community in 2004. The purchase price was $22.5 million or $216,346 per unit.
Harvest Park is located in southeast Santa Rosa at 2327 Summercreek Dr. Project amenities include over-sized square footages, in-unit washer/dryer combos and views of the Sonoma Hills and an adjacent community park.
The property is approximately 92% leased at rents ranging from $1.34 to $1.16 per sf per month. Based on in-place income the property sold at a 4.6% capitalization rate. The transaction was brokered by Richard Knutson, Jay Cross and John Leyvas of Alameda-based Premier Apartment Advisors. The brokers represented the seller and procured the buyer.
"Essex has been in the business for a long time and a lot of their assets date back to the 1970s and there were very focused on the fact that the property was only three years old," Knutson tells GlobeSt.com. "The property also has a final condo map, which gives them two exit strategies."
The acquisition is the first in the Sonoma Valley for Essex, which at last count had ownership interests in some 26,000 apartment units. "Harvest Park is our first acquisition in Sonoma County, a geographically appealing and growing residential market due to an extension of the San Francisco North Bay suburbs. We were attracted to Harvest Park's quality design, construction and excellent location, as well as the long-term value of its recorded final condominium map."
Essex EVP Craig Zimmerman says the region is a geographically appealing and growing residential market that is considered an extension of the San Francisco North Bay suburbs. "We were attracted to Harvest Park's quality design, construction and excellent location, as well as the long-term value of its recorded final condominium map," he says.
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