Oakmont Properties Buys Sacramento Asset for $118M
CBRE brokered the sale of the 277-unit Press at Midtown Quarter, marking one of the city's largest-ever apartment deals.
The Press at Midtown Quarter. Image courtesy of CBRE
Oakmont Properties has paid $118 million for a new, 277-unit apartment building in Sacramento, Calif., bucking the trend in the state capital’s pandemic-battered multifamily investment market. DeBartolo Development and its local partner SKK Developments sold the property, The Press at Midtown Quarter, in a transaction brokered by CBRE’s Marc Ross.
READ ALSO: Sacramento Multifamily Report – Summer 2020
Financing was arranged by Andrew Behrens with CBRE’s debt and structured finance group. Located at the corner of 1714 Street and Q Street in Sacramento’s Midtown area, the five-story building was completed in June and includes 8,600 square feet of ground-floor retail. The development partners broke ground on the property in August 2018, with PNC Bank providing a $55 million construction loan, according to Yardi Matrix records.
Apartments run the gamut from studios to three-room layouts, ranging in size from 516 to 1,326 square feet. Amenities include a two-level co-working space, a fitness center and yoga studio, a rooftop lounge and one acre of outdoor community space with a heated pool and other features. The property is located across the street from the Sacramento Bee office, which the newspaper plans to move out of next summer, with five large grocery stores and more than 120 restaurants and bars within a one-mile radius.
Market slowdown
CBRE said in a statement that the Press at Midtown Quarter is the largest new construction project in the city’s urban core. The brokerage noted that the new sale is the largest trade of a single-asset, market-rate apartment asset in Sacramento history in terms of deal size.
Multifamily deals in the metro of more than 2.1 million people totaled $249 million during the first five months of 2020, down 31 percent compared to the same period of last year, according to the latest Yardi Matrix market report. Average rent fell 0.3 percent on a trailing three-month basis through May to $1,524.
This past May, California-based Oakmont Properties purchased a 286-unit community in Broomfield, Colo., for $90 million as well as a 453-unit luxury community in Salt Lake City, Utah, for an undisclosed price. The company sold Landing at College Square, a 270-unit community in Sacramento, to MG Properties Group in March.
