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9/28/18
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In multifamily investment news out of Sacramento, Ridge Capital Investors LLC and Contrarian Capital Management LLC have acquired two suburban apartment communities totaling 268 units in separate transactions totaling $39.5 mil ($147.4k/unit). The properties were sold by JCM Partners.
The properties, La Riviera Commons, located at 8719 Woodman Way, and Antelope Woods, located at 6413 Tupelo Drive, are both Class B apartment communities built in 1975 and 1986 respectively. The new ownership group will execute a significant renovation program across the two-property portfolio that will consist of substantial improvements to unit interiors and exteriors, as well as upgrades to property amenities, branding and signage. Upon completion, the properties will compete directly with comparable Class B+ and A- properties.
Marc Ross of CBRE represented the seller on La Riviera Commons. Steve Nelson, Dusty Haeling, Phil Saglimbeni, Sal Saglimbeni and Ken Blomsterberg, of Marcus & Millichap/IPA represented the seller on Antelope Woods. Ridge has engaged FPI Management Inc to provide third-party management services for both communities. FPI is the 5th largest multifamily property management company in the nation, managing more than 110,000 units in 13 states.
These investments are the 5th and 6th apartment acquisitions by Ridge in the Sacramento region since 2014, representing an investment of nearly $100 mil. A primary driver for Ridge’s investment is the very healthy Sacramento housing dynamic, which has positioned the region to a top tier rental growth market over the last five years. Much of this performance is a result of excellent job growth fundamentals coupled with very low delivery of new housing inventory this cycle. According to commercial real estate research firm Yardi Matrix, year-over-year rental growth in 2017 exceeded 7% and the immediate neighborhoods are expected to achieve high single-digit rent growth in 2018 as well. Unemployment in the region has fallen to below 4%, led in part by private sector growth in healthcare and technology.
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