Canyon Partners Plans New Multifamily Build in Sacramento

Canyon Partners Real Estate has formed a joint venture with Anthem Properties to build a 153-unit, mid-rise multifamily community in an opportunity zone in Sacramento. While the adjacent Bay Area has experienced double-digit rent decreases, Sacramento has actually had positive rent growth over the last year. Along with the benefits of an opportunity zone, Canyon is bullish on the fundamentals of the project, despite the market dislocation.

Despite the COVID-19 pandemic, the Sacramento multifamily market has demonstrated remarkable resilience, as in-migration trends into Sacramento have accelerated, and this project is well positioned to meet the growing need for multifamily housing in the heart of the city,” a source close to Canyon Partners tells GlobeSt.com.

Canyon invested $18.8 million in the deal and the joint venture secured a $39.6 million construction loan from HSBC Bank. “Canyon Partners is focused on real estate investments in strategic locations within high-growth markets. This project is located in the heart of downtown Sacramento, and is proximate to public transit, employment centers, and entertainment options,” says the firm’s source. “We believe this project’s thoughtful design and amenities will provide a quality living option to residents within a city experiencing strong population growth.”

Canyon regularly partners with local experts to execute development deals, and this project was no different. “Anthem was the perfect partner for this project given their extensive experience in real estate development, the strength of their team, and their commitment to the Sacramento area,” says the source. “They have invested in, developed, or managed 272 residential, commercial and retail projects across western North America, 179 of which are active projects in their portfolio.”

Canyon has also targeted opportunity zone investments. “This investment marks Canyon Partners’ seventh qualified opportunity zone investment, demonstrating our confidence in the attractive nature of these projects for our investors,” adds Canyon.

This particular development is near the California State Capitol, Sacramento City Hall, Downtown Commons and public transit. It will feature a fitness center, courtyard, and a rooftop deck as well as 10,000 square feet of retail space.