The sale price equates to $113,439 per unit and $147 per square foot. The capitalization rate on CTL's investment is approximately 5.6% based on 90-day trailing expenses and pro forma expenses. Vacancy over the past 90 days has been approximately 5%.
Built in 1993 at 800 Micro Ct., a couple of miles from Hewlett Packard's regional HQ, Canterbury Downs features one-, two-, and three-bedroom floor plans with an average unit size of 770 sf. All units include a full size washer & dryer, central heat and air conditioning, a contemporary appliance package and a private patio or terrace. Community amenities include a clubhouse, swimming pool, Jacuzzi, fitness center, indoor air conditioned racquetball court, a lighted tennis & basketball court, a children's playground and detached garages.
Curtis Gardner, Mark Leary and John Downing of the Arroyo & Coates' Apartment Marketing Group had the disposition assignment.
As of the end of June, BRE had classified as held for sale six operating properties with a total net book value of $96.0 million. Four of the assets, presumably including Canterbury Downs, are in the greater Sacramento area while one is in the San Francisco Bay Area and the other is in Seattle.
In addition to Canterbury Downs, the company also sold to CTL a 120-unit asset in Rocklin, CA, called Rocklin Gold. The purchase price was $13.62 million ($112,603 per unit and $112,603 per sf), which represents the same cap rate as the Canterbury deal. In July, BRE sold Pinnacle at Blue Ravine, a 260-unit property in Folsom, CA, for approximately $40.0 million. The capitalization rate on that deal was approximately 6%, calculated on the trailing 12 months of property-level NOI.
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