Step Up Housing recently acquired two California multifamily communities totaling 406 units -- Copper Creek, a 268-unit community in Sacramento, and Terramonte at Foothill, a 138-unit community in Pomona – for a combined price of $91.35 mil. Sack Capital Partners and Align Finance Partners provided structured financing for the purchases.
6430 Verner Ave, Sacramento, CA |
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Located at 6430 Verner Ave in Sacramento’s Citrus Heights neighborhood, Copper Creek is a 268-unit, garden-style community that sold for $54.65 mil. Built in 1987, the property is situated along the high-visibility Interstate 80 corridor between downtown Sacramento and Roseville.
Copper Creek offers a mix of one- and two-bedroom floorplans averaging 669 sf, with approximately 62% of units already renovated. Amenities include a fitness center, resort-style pool, sand volleyball court, community garden, and dog wash and pet-wash stations. The community was 95% occupied at the time of sale.
Sacramento is home to an estimated population of 2,476,045, projected to grow to 2,533,968 by 2027, with a median household income of $99,936 and a labor force of 1,109,048. The region was recently ranked the #1 place to live in California and the #2 most popular metro nationwide for homebuyers looking to relocate, according to Forbes and Redfin. The Citrus Heights submarket has posted average annual rent growth of 4.98% over the past five years with occupancy holding near 95.8%, and it remains one of the only submarkets in the region with no new supply in the development pipeline.
Marc Ross, Joe McNamara, Claire Holt, Andrew Behrens, and Jesse Weber with CBRE represented the seller in the transaction.
Located at 150 West Foothill Blvd in Pomona, Terramonte at Foothill is a 138-unit, low-density garden-style community that traded for $36.7 mil. Built in 1963, the property offers a mix of studio, one-, two-, and three-bedroom floorplans averaging 910 sf, along with two resort-style swimming pools, a fitness center, resident social lounge, barbecue pavilion, and 137 garages.
The community sits within the highly regarded Claremont Unified School District, which carries an overall “A” Niche grade and a 97% graduation rate, and is within roughly three miles of Cal Poly Pomona, the University of La Verne, Western University of Health Sciences, and The Claremont Colleges.
Within a one-mile radius of the property, the average household income is $117,382, projected to grow 14.44% by 2030, while the city of Pomona – the seventh-largest city in Los Angeles County – has a population of 146,847 and a submarket vacancy rate of just 4.5%. A widening affordability gap between renting and homeownership in the surrounding submarket, where a typical monthly home payment now runs nearly double the average in-place rent, continues to support strong multifamily fundamentals in the market.
Kevin H. Green, Christopher J. Zorbas, Joseph V. Grabiec, Alexander Garcia, Jr., and Gregory Harris with Institutional Property Advisors (IPA) represented the seller in the deal.
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