SACRAMENTO—The Sacramento apartment market continues to improve in both rates and occupancy as the combination of a lack of new supply and an improving job market is expected to further lead to a positive effect on housing fundamentals. With regard to the improving multifamily market, two Sacramento-area apartment communities have been acquired, totaling 640 units in Roseville, CA and Rancho Cordova, CA. PCCP LLC provided in excess of $100 million in senior loans to Sacramento-based Oakmont Properties for the two-property acquisition.
Philip Russick, principal with PCCP, tells Globest.com: "These loans fit into PCCP's strategy of lending against quality real estate with experienced borrowers."
The first loan was for the acquisition of The Preserve at Roseville, a 97% occupied, 336-unit, class-A garden-style apartment community. Built in 1999, the property is located at 1299 Antelope Creek Dr. and is situated on 17.6 acres. The property is just 30 minutes from downtown Sacramento; is adjacent to the Douglas Boulevard office corridor; and is also close to consumer services, executive housing and two large hospitals (Kaiser Permanente and Sutter Health). The asset further benefits from convenient highway access via Interstate-80 and Interstate-65.
The second loan was for the acquisition of Oak Brook Apartments, a 97% occupied, 304-unit, class-A garden-style apartment community. Built in 2001, the property is located at 12499 Folsom Blvd. and is situated on 14.5 acres. The asset is located on the border of Rancho Cordova and Folsom, 19 miles east of Sacramento. Retail, dining and entertainment venues in the immediate area are abundant with the Folsom Premium Outlets, Palladio at Broadstone Mall and Theater, Broadstone Marketplace and Plaza, Folsom Historic District and the Central Folsom Shopping District, all located within a short drive of the community. Oak Brook also offers convenient access to public transit via the Hazel Light Rail Station, located across the street, which connects residents to 50 light rail stops and more than 3,300 bus stops throughout Sacramento County. Finally, the property benefits from various recreation options in the immediate neighborhood including the American River, Nimbus Dam Recreation Area and Sacramento State Aquatic Center, all within one mile of the community.
"These two loans are cross collateralized with each other and presented PCCP with a compelling opportunity to finance stabilized, high-quality apartment communities in strong suburban Sacramento locations, with experienced ownership," said Russick.
As previously reported, PCCP acquired a four-building office portfolio last year.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
