SACRAMENTO—ARA, a Newmark Co., has sold a 206-unit class B apartment community located in Citrus Heights, CA. Now named Atwood, the property was previously known as the Grove at Sunrise.
The ARA Newmark Pacific team, led by San Francisco-based principals Mark Leary and Craig Chiappone, served as the exclusive advisors on the transaction representing both the seller, a private San Francisco Bay Area family, and the buyer, Fairfield Residential. The property sold for $27 million, which equates to $131,068 per unit or $137 per square foot.
Atwood is a premier residential development in the Sacramento Region, situated on the northeast corner of Madison Avenue and Sunrise Boulevard, on the border of Citrus Heights and Fair Oaks. This region attracts an educated work force with a high median household income. This suburban infill location is within walking distance to over two million square feet of retail space, it has convenient access to many recreational activities, and is in close proximity to some of the region's largest employers.
Matt Clark, VP of acquisitions at Fairfield, says that the firm “is very bullish on the Sacramento apartment market. With the return of strong job growth and very little multifamily development in the pipeline, the market is well-positioned for continued revenue growth. This is particularly true in the Citrus Heights and Fair Oaks submarkets, where no multifamily sites exist. The property offers high-quality apartment homes in a location close to both employment and retail. We believe that our renovation of the common areas and amenities will greatly enhance the appeal of the property, as will the development of a new grocery-anchored retail center on the old Capital Nursery site next door."
Sacramento rental rates grew 9% in Q4 2014 from Q4 2013 and are poised to grow further, while the regionwide vacancy declined by 1% to only 4.1%. The Citrus Heights submarket reflects these figures: vacancy decreased by 1.4% from Q4 2013 to Q4 2014 while rental rates grew 4.1% during this period, according to a prepared statement.
Built in 2000, Atwood has a distinctive market advantage over comparable apartment communities because it is much newer than other properties in the area. In the Citrus Heights / Fair Oaks submarket, the average age of the multifamily product is 29 years old, while Atwood is only 14 years old.
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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.
