Sterling Pointe is located at 2237 and 2257 Hurley Way in the Arden-Arcade submarket of Sacramento.
SACRAMENTO—Ridge Capital Investors LLC and Contrarian Capital Management LLC recently acquired a 250-unit suburban multifamily community for $33 million. Ridge has acquired more than $750 million of office and apartment properties in Northern California since 2012, and this is the pair's seventh joint venture investment together.
Sterling Pointe, located at 2237 and 2257 Hurley Way, is a class-B apartment community built in 1972 in the Arden-Arcade submarket. The ownership group will execute a renovation program that will consist of substantial improvements to unit interiors and exteriors, as well as upgrades to property amenities, branding and signage.
"We expect to renovate kitchens, bathrooms, carpet, paint, lights and to bring the interiors up to code, where necessary," Trevor Wilson, managing director of Ridge Capital Investors LLC, tells GlobeSt.com. "Much of the transformation will be on the exterior as we will be re-siding and adding new windows. Common area amenities will also be upgraded to something closer to a class-A level."
This investment is the eighth apartment acquisition by Ridge in the Sacramento region since 2014, representing an investment of more than $150 million. A primary driver for Ridge's investment is the consistently healthy Sacramento housing dynamic, which has propelled the region to a top-tier rental growth market during the last five years. Much of this performance is a result of positive job growth fundamentals coupled with very low delivery of new housing inventory this cycle.
In fact, Sacramento year-over-year rental growth in 2019 exceeded 6% and the immediate neighborhoods are expected to achieve greater than the national average in 2020, according to Marcus & Millichap. Unemployment in the region has fallen to below 3.5%, led in part by private sector growth in healthcare and technology.
Ridge has engaged FPI Management Inc. to provide third-party management services for Sterling Pointe. FPI manages more than 110,000 units in 13 states.
John Shaffer, Brian Nelson and Nicole Parrish of Colliers International's Sacramento office represented Ridge on the transaction.
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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.
