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ConAm Adds to Apartment Portfolio Through JV

ROSEVILLE, CA-The owner-manager of 8,300 units in Northern California pays approximately $63.5 million for a 465-unit value-add opportunity in partnership with Urdang.

By Brian K. Miller | Updated on August 26, 2008

ROSEVILLE, CA-Rosemeade at Olympus Pointe, a 465-unit apartment complex in this Sacramento suburb has changed hands for $63.5 million [$136,559 per unit], according to county property records. The new owner is a joint venture of the San Diego-based ConAm Group of Companies, which owns 8,300 units in Northern California, and an investment fund of Urdang, a Plymouth Meeting, PA-based investment management division of BNY Mellon Asset Management.

The 38-building development sits on 31 acres at 1451 Rocky Ridge Dr., adjacent to an office development, a retail center and high-end housing. The buildings surrounded a central common area with a large clubhouse and pool. The units each have their own garage and full-size washer and dryer. It opened in 1992 and is currently 97% leased.

The new ownership plans to invest an additional $5.5 million to substantially renovate the property, both the individual units and the common areas, and then push rents. If things go as planned, the investment should help raise the cap rate on the investment to approximately 7% upon re-stabilization, which would represent an increase of a little more than 100 basis points, according to a source familiar with the transaction.

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