CBRE Arranges Sale of 160-Unit Sacramento Asset
- Aug 03, 2017
CBRE Affordable Housing arranged the sale and financing of Alhambra at Mace Ranch, a 160-unit affordable multifamily property in Davis, Calif., for $28.5 million. CBRE Affordable Housing Senior Vice President Tim Flint, who recently arranged the sale of an affordable community in Dania Beach, Fla., and Marc Ross of CBRE Sacramento represented the seller in the transaction. Jim Flinn, senior vice president of CBRE Affordable Housing’s Debt and Structured Finance team secured $20.2 million in acquisition financing with a 15-year fixed-rate loan provided by Fannie Mae, with eight years of interest-only.
According to Yardi Matrix data, Integrity Housing sold the asset after having purchased it back in 2014 for $25 million. The 2014 sale price is unconfirmed, but believed to be reasonably representative of the transfer.
Located at 4500 Alhambra Drive in the established Mace Ranch community, the property is near Unitrans and Yolo transit transportation, a city park and shopping centers. The asset is also less than four miles from the University of California Davis, the largest employer in the area with more than 28,000 employees. The unit mix consists of 24 one-, 72 two-, 48 three- and 16 four-bedroom units. Amenities include:
- fitness center
- business center
- swimming pool
- 200 parking spaces
Convenient prepayment term
Built in 1999, Alhambra at Mace Ranch operates under the Section 42 Low Income Housing Tax Credit program and has 70 units restricted to those making 60 percent of the area median income.
“We were able to tailor the yield maintenance to 13 years, shorter than the standard prepayment term, to better align the prepayment penalty with the client’s execution strategy based on the property’s affordability restrictions expiring in 12 years,” said Flinn, in a prepared statement.
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Image courtesy of CBRE Affordable Housing