|
|
9/22/17
|
Security Properties purchased Sycamore Terrace, a 244-unit property in Sacramento, for $57.4 mil ($235k/unit). Built in 2006, Sycamore Terrace is located at 40 Park City Ct, south of Florin Rd and just west of I-5.
The property consists of 11 three-story residential buildings spread out over more than 11 acres. It’s located in the Pocket suburb of Sacramento, approximately 10 minutes southwest of the downtown core. Residents of Sycamore Terrace enjoy fast I-5 access to employment centers in the city’s CBD and also nearby Elk Grove.
With an average unit size of over 1k sf, the floor plans at the property are significantly larger than its competitors. In addition, it is the only asset in the competitive set to boast 9' ceilings and dedicated in-unit laundry rooms. Sycamore Terrace also features a 5k sf clubhouse and is one of only two properties in the vicinity to offer garages, both of which should offer long-lasting appeal to existing and future tenants.
Sycamore Terrace is the only institutional multifamily property delivered in the submarket since the early 1990's. With no planned developments, and given current land use and construction costs, the property should remain as the newest construction in the submarket for the foreseeable future. This should allow Sycamore Terrace to experience positive and outsized rent growth as large and exciting projects like the Downtown Commons and the Delta Shores power center push Sacramento forward.
According to Beau Madsen, Manager at Security Properties, the acquisition was made because, "Sacramento, and this submarket in particular, is expected to outperform for the foreseeable future due to a strong and diversifying job market, population in-migration, and positive supply/demand characteristics. Through a thoughtful renovation, this asset will be well positioned to capitalize on the market's growth while providing current and future tenants an improved renting experience."
The property will be managed by Security Properties Residential.
|
|
 Return to the Archive page
|
|
|
|
|
Printer-friendly Version
Email an Associate
