A multifamily property with potential to capture more of the nearby University of California Davis student population was sold for $42 million. A Bay Area-based buyer purchased Cambridge House Apartments from Aspen Square Management, according to Yardi Matrix data.
The 140-unit community is located on a nearly 4-acre site with amenities including a swimming pool, fire pit and barbecue area with hammocks, game room, swing garden, bike storage room and off-leash dog park. The property of one-, two- and three-bedroom units is 100 percent occupied with tenants paying an average rent of $2,029, according to Yardi Matrix data. Cambridge House, located at 619 Pole Line Road in Davis, Calif., is also a couple of miles away from the University of California Davis.
The Mogharebi Group’s Alex Mogharebi and Otto Ozen represented Aspen Square Management and the buyer. According to Yardi Matrix data, Aspen purchased the property from Olsen Melvin Trust in December 2000 for $6.4 million. Mogharebi and Ozen also arranged another sale for Aspen in Carmichael, Calif., where a 114-unit community was sold for $23.2 million.
CAPTURING DEMAND FOR STUDENT HOUSING
As for Cambridge House, Ozen told Multi-Housing News that the buyer competed against nine other offers. Ozen said in prepared remarks that the property attracted a lot of offers due to being move-in ready, offering a suite of amenities and its location by the University of California Davis. With the surrounding Davis area, Ozen told MHN that the city has a high quality of life with an emphasis on parks and open spaces while also being close to Sacramento and its employers.
Ozen also told MHN that while Cambridge House isn’t designated as a student-housing asset, its proximity to the university is likely why it attracts a student-heavy demographic.
“With a relatively small investment in furniture, there is an opportunity for the new owner to convert and operate the property on a per bed rental basis, providing a significant upside in cash flow,” Ozen told MHN.