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SACRAMENTO—GlobeSt.com has exclusively learned that two unrelated multifamily communities located in Davis, CA have changed hands. College Square, a 240-unit property built in 1970, sold for $34.55 million to Danville-based Green Leaf Partners, and Academy Lane, a 158-unit complex built in 1959, sold for $18.15 million to Walnut Creek-based Bridge Partners.
Marc Ross and William Blucher of CBRE's Sacramento Multifamily Group represented the sellers in both transactions—Kennedy Wilson in the sale of College Square and Virtu Investments in the sale of Academy Lane. Both deals, the firm says, underscore the booming demand for multifamily properties in the Sacramento Region.
“Over the last six months, the Sacramento Region has received national attention as one of the nation's top performing apartment markets, and the City of Davis is widely considered to be one of the most coveted submarkets in the region due to the significant supply-demand imbalance created by the City's no-growth policy and the increasing enrollment base at the University of California, Davis,” explains Ross, who directs the Sacramento Multifamily Group. “These factors translate into perennially low vacancy and significant and reliable rent growth, which are highly attractive to investors.”
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Historically, opportunities to invest in Davis are extremely rare, as properties are generally held for generations, according to the CBRE brokers who noted that due to this limited supply, the sale of College Square marks the first property over 200 units to trade hands in over a decade.
“Recently, however, this low-velocity submarket has come alive due to the aggressiveness of buyer capital today,” Ross adds
College Square and Academy Lane are located around the corner from one another, situated just a short distance from UC Davis and within blocks of Downtown Davis, a highly desirable student location, CBRE says.
“While both owners recently performed exterior capital improvements and renovated a small portion of the unit interiors, the predominately dated units provided rare value-add opportunities for investors,” says Blucher.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
