Interstate Equities Pays $43M for Sacramento Portfolio
This is the first time the assets change hands since opening in the 1980s.
Interstate Equities Corp. has purchased Temescal Apartments and Pepperwood Apartments, two communities in Davis, Calif., totaling 140 units. Fox Group sold the two-property portfolio for $42.8 million or $306,000 per unit, in a transaction brokered by Transwestern.
This is the first time the two assets have changed hands since Fox Group developed the communities in the 1980s. Temescal Apartments traded for $33.4 million, while Pepperwood Apartments sold for $9.4 million. The acquisition also marks Interstate Equities Corp.’s entrance into the Davis market.
Transwestern Senior Director Shivu Srinivasan arranged the transaction on behalf of the seller.
The deal also marks the third time in the last six years that a 100-unit multifamily community trades in Davis. Transwestern arranged one of the other deals, including the sale of the 104-unit El Macero Village in 2023.
A market-rate portfolio in Davis
Completed in 1984 at 2477 Sycamore Lane, Temescal Apartments consists of 15 one- and two-story buildings across a 6.5-acre site. The 100-unit community—now dubbed Luma Davis—encloses residences with one- to four-bedroom layouts ranging from 528 to 1,420 square feet.
Across the road, at number 2222 on the same street, is Pepperwood Apartments, rebranded as Aria Davis. This smaller property has 40 apartments with one- to three-bedroom layouts ranging from 694 to 1,124 square feet.
Amenities at both communities include swimming pools, study rooms for students, laundry facilities, a fitness center and grade-level parking. The two residential properties are near California State Route 113, which connects them to the University of California-Davis campus, some 2 miles south. Downtown Sacramento, Calif., is 20 miles east.
In early 2026, Interstate Equities Corp., in partnership with PGIM, purchased four multifamily properties across Western U.S., with the aid of a $201.5 million acquisition loan. The deal comprised 574 units in Seattle and the San Francisco Bay Area.
Sacramento market surges in multifamily sales
Sacramento’s multifamily market registered a surge in sales in 2025. The metro saw $1.1 billion in investment volume, with 37 assets changing hands at an average per-unit price of $237,513, according to Yardi Matrix information. The total sales figure marked a 109 percent increase year-over-year, while the per-unit price rose 23 percent compared to the value registered in 2024.
This rise in multifamily transaction activity spread across the entire U.S. in the first half of 2025, after a slower performance in 2024. Nationwide, sales recorded a 20 percent uptick year-over-year during the first two quarters of 2025, from $29.2 billion in the first half of 2024 to $35 billion. Four of the top 10 metros with the highest increases were Western metros, namely Seattle, Denver, Los Angeles and Portland, Ore.
