STOCKTON, CA—Have home prices fully recovered from the declines suffered during the Great Recession, or are they still struggling to make it back to the peaks they reached before the crisis? Despite Stockton metro home prices climbing some 82.91% from crisis-era lows, it is one of 10 US metropolitan areas that still has the furthest to go to achieve full recovery, as prices in the metro were still 39.08% below boom-era peak values in the third quarter of 2016, according to HSH.com.
Stockton is one of the areas with the largest recovery gaps. Areas with higher peak deltas are Bakersfield, CA and Las Vegas. Whether or not a specific home is now above or is still below the value when it was purchased depends on when it was purchased.
It is somewhat a tale of two cities in Stockton. Despite the lagging of the residential market, many believe the Stockton commercial market is farther along in the recovery process. One example is the sale of two Stockton apartment communities for a combined total of $15.9 million to buyer Patmon Sorrento LP.
TRI's Brian Purcell, a multifamily investment specialist based in the firm's Roseville office, represented the seller, Kuchich LP, in the disposition of Cypress Apartments and Ashley Park Apartments.
“It is evident that Stockton has bounced back from its low point during the recession when the city was in bankruptcy and investors had definitely red-lined Stockton,” Purcell tells GlobeSt.com. “We had good buyer activity on these listings and got full asking price on both communities.”
Cypress Apartments is comprised of 126 apartment homes on about 4.41 acres located at 1011 Rosemarie Ln. It has 70 one-bedroom and 56 two-bedroom units in seven buildings. Built in 1979, current rents average $725 for one-bedrooms and $850 for two-bedrooms. Its sale price was $8.4 million.
Ashley Park Apartments has 106 units, 86 of which are one-bedroom apartments while 20 have two bedrooms. Average rents for the one-bedroom units are $685 and the two-bedroom apartments have average monthly rents of $835 per apartment home. The multifamily asset traded for $7.5 million. It is located at 6232 N. Pershing Ave.
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STOCKTON, CA—Have home prices fully recovered from the declines suffered during the Great Recession, or are they still struggling to make it back to the peaks they reached before the crisis? Despite Stockton metro home prices climbing some 82.91% from crisis-era lows, it is one of 10 US metropolitan areas that still has the furthest to go to achieve full recovery, as prices in the metro were still 39.08% below boom-era peak values in the third quarter of 2016, according to HSH.com.
Stockton is one of the areas with the largest recovery gaps. Areas with higher peak deltas are Bakersfield, CA and Las Vegas. Whether or not a specific home is now above or is still below the value when it was purchased depends on when it was purchased.
It is somewhat a tale of two cities in Stockton. Despite the lagging of the residential market, many believe the Stockton commercial market is farther along in the recovery process. One example is the sale of two Stockton apartment communities for a combined total of $15.9 million to buyer Patmon Sorrento LP.
TRI's Brian Purcell, a multifamily investment specialist based in the firm's Roseville office, represented the seller, Kuchich LP, in the disposition of Cypress Apartments and Ashley Park Apartments.
“It is evident that Stockton has bounced back from its low point during the recession when the city was in bankruptcy and investors had definitely red-lined Stockton,” Purcell tells GlobeSt.com. “We had good buyer activity on these listings and got full asking price on both communities.”
Cypress Apartments is comprised of 126 apartment homes on about 4.41 acres located at 1011 Rosemarie Ln. It has 70 one-bedroom and 56 two-bedroom units in seven buildings. Built in 1979, current rents average $725 for one-bedrooms and $850 for two-bedrooms. Its sale price was $8.4 million.
Ashley Park Apartments has 106 units, 86 of which are one-bedroom apartments while 20 have two bedrooms. Average rents for the one-bedroom units are $685 and the two-bedroom apartments have average monthly rents of $835 per apartment home. The multifamily asset traded for $7.5 million. It is located at 6232 N. Pershing Ave.
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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.
