Aspen Square Management Sells Sacramento-Area Apartments
- Aug 23, 2019
Abby Creek Apartment Homes in Carmichael, Calif., roughly 10 miles from Sacramento, was sold for $23.2 million. A private investment group based in San Jose, Calif. purchased the multifamily property from Aspen Square Management, according to Yardi Matrix data.
The apartments at 5820 Fair Oaks Blvd. are split into 25 residential buildings that total nearly 88,000 square feet of rentable space on a nearly 5-acre property. The community includes 114 apartments that consist of a mix of studios, one- and two-bedroom units. The property includes a swimming pool, fitness center, off-leash dog park with obstacles and outdoor BBQ stations.
According to Yardi Matrix data, Abby Creek is at a more than 99 percent occupancy rate with an average rent of $1,404. The Mogharebi Group’s Alex Mogharebi and Otto Ozen, principals, represented both private investors.
Ozen said the record-high price of $203,000 per unit for Abby Creek was a result of the quality of the property, the cash flow it was generating and the lack of available multifamily inventory in the area.
The availability in the second quarter of 2019 has looked much the same as past quarters, according to Collier’s second quarter report on Sacramento’s multifamily sector.
The report noted that 372 units were absorbed in the second quarter, outpacing the new supply by 117 units. The strong absorption and slow supply is keeping Sacramento’s occupancy rate high at more than 96 percent, which has been the case for 17 of the last 20 quarters, according to Colliers. The tightening market Sacramento is developing is also increasing the rent by maintaining a nearly five percent annual rent growth, bringing it to an average of $1,459, the report noted.
Sales in the area have also been strong with the second quarter bringing a total of nearly $408 million across 44 transactions, according to the Colliers report. The report added that there will likely be even more sales as owners will be selling off their high-value assets around this time of the year.