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Buying Frenzy Erupts For Renovation Candidates

SACRAMENTO—Rental performance improves 10% year over year, hence the frenzy for three properties, CBRE says in this EXCLUSIVE.

By Lisa Brown | lisabrown | | Updated on May 26, 2016
Stone Creek Apartments Stone Creek Apartments sold for $43.5 million or $118,207 per unit.
SACRAMENTO—With its rapid growth in population and employment, Sacramento is becoming one of the strongest rent growth markets in the nation. Sacramento experienced 10% rent growth year-over-year, as of March 2016. The city was recently ranked first nationally by Axiometrics for annual effective apartment rent growth and ranked second nationally for projected rent growth during the next five years. As evidence of that growth, Oakmont Properties has sold three Sacramento area multifamily properties for a total of $89 million or slightly more than $105,000 per unit. Each property was purchased by a separate buyer, says CBRE in this EXCLUSIVE . Stone Creek Apartments , located at 2645 Stonecreek Dr., has 368 units. The sale price for this asset was $43.5 million or $118,207 per unit and it was sold to Bascom San Francisco LLC. Sunflorin Village Apartments , located at 8550 Florin Rd., has 256 units. The sale price for the multifamily property was $23.9 million or $93,359 per unit. It sold to to K&C Investments . Oak Pointe is located at 2450 Seamist Dr. and has 216 units. The sale price for the apartment community was $21.3 million or $98,380 per unit. The buyer of this asset was Latitude Management Real Estate Investors Inc. Marc Ross , multifamily senior vice president of CBRE’s Sacramento office represented Oakmont Properties and arranged the sale of the three apartment communities on its behalf. Ross tells GlobeSt.com: “There was frenzy around these assets as investors viewed them as excellent renovation opportunities within one of the top rental markets in the nation. Sacramento’s recent rental performance has been remarkable and its forecasted growth contributed to the highly competitive bidding process.”    

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