Sacramento-Area Community Lands $45M Refi

The Ezralow Co. has obtained $44.5 million for the refinancing of The Fountains of Fair Oaks, a 270-unit community in Fair Oaks, Calif, a Sacramento suburb. Berkadia Managing Director Allan Freedman arranged the five-year, interest-only loan.

Completed between 1975 and 1976 and completely renovated in 2012, the garden-style property encompasses 49 buildings spread across 14 acres. The unit mix comprises one- and two-bedroom layouts, ranging from 624 to 1,136 square feet. Features include washers, dryers, stainless steel appliances and private balconies or patios.

Common-area amenities include a clubhouse, a fitness center and a yoga studio, two swimming pools and a spa, a tennis court, a basketball court and a business center, along with six laundry facilities and large decks with barbecues and fire pits.

The property is at 4800 Sunset Terrace, 16 miles from downtown Sacramento and close to a host of dining and retail opportunities, including the Sunrise Village shopping center. Sacramento International Airport is 22 miles away.

Sacramento’s multifamily sector faces headwinds

According to Yardi Matrix information, only 11 communities—almost 1,240 units—changed hands last year in the Sacramento market for a combined $210 million, a steep decline from the 32 properties—some 5,060 apartments—that traded in 2022 for $1.3 billion. The average price per unit also dropped from $273,419 in 2022 to $206,128 in 2023.

In one of last year’s transactions, Positive Investments sold Continental Terrace, a 142-unit community in South Sacramento, to a private investor. The 1975-completed asset changed hands for $15.8 million.