Ridge Capital, Andell JV Snags Sacramento Community
The Class B property traded for $22.4 million and is located in a submarket with a 13.7 percent year-over-year rent increase, almost seven times the national rate.
By Ariela Moraru
Ridge Capital Investors and an affiliate of Andell Inc. acquired Sierra Fair Apartments, a 204-unit property in Sacramento, Calif., for $22.4 million. The buyers are planning a significant interior and exterior transformation of the Class B property, which was 96 percent occupied at the time of the transaction. This marks Ridge and Andell’s third joint venture investment in Sacramento in the last three years. CBRE represented the seller.
Located at 2500 Fair Oaks Blvd., Sierra Fair was built in 1963. New property amenities will include two clubhouses, outdoor entertaining areas and a fitness center. The property has easy access to Highway 50, is minutes from CSUS and less than a half mile from Pavilions Shopping Center. FPI Management will manage the property.
The asset is situated in the highly amenitized southern Arden-Arcade submarket, a convenient, infill, A+ location near the region’s most afﬂuent housing communities, including Arden Park, Sierra Oaks and Arden Park Vista.
Sacramento sets the standard
Sacramento registered the highest rental growth in 2016 and a 9 percent year-over-year increase as of April 2017, more than four times the national rate, according to Yardi Matrix. The Arden Garden/Arden Terrace submarket saw one of the highest rent increases in Sacramento at 13.7 percent. Rent hikes in Sacramento are a result of a very low delivery of new housing inventory, with less than 600 units added in 2016, 1,500 units underway and 10,000 units in the planning stages.
Image courtesy of Ridge Capital Investors