Sacramento, Calif. (Sept. 28, 2018) – 29th Street Capital (29SC), a privately-held real estate investment and advisory firm, has acquired River Blu Apartments, a 417-unit multifamily community located in the La Riviera submarket of Sacramento. 29SC plans to invest approximately $4.3 million in capital improvements focusing primarily on unit renovations, clubhouse upgrades and amenity enhancements. Kitchens will get stainless steel appliances, vinyl flooring and upgraded cabinets. Bathroom upgrades are expected as well.
“The purchase of River Blu Apartments marks our fifth acquisition in Sacramento,” said Casey Davis, Senior Vice President of Acquisitions in Northern California. “With the continued expansion of our Sacramento portfolio, we will be able to lower operating costs and maximize management efficiencies.”
Sacramento is quickly emerging as one of California’s strongest economies, being named the fastest growing large city in California by the California Department of Finance. The market has its lowest unemployment rate since May 1999. The area economy is expected to remain strong with increasing salaries and steady population growth through the end of the year.
“Sacramento is one of the strongest real estate markets in the country right now,” Davis added. “We think our business plan will successfully reposition the asset to compete in the market by offering a high-quality and affordable housing option as rents continue to trend upwards.”
River Blu Apartments is nine miles southeast of downtown Sacramento and three miles from California State University – Sacramento, which has an enrollment of more than 35,000 students and employs approximately 2,750 faculty members. The property is also near Glenbrook Shopping center, which features numerous daily conveniences.
The transaction closed September 28. The sale price was not disclosed.
Formed in 2009, 29th Street Capital is a privately-held real estate investment and advisory firm that employs a value-added investment strategy in acquiring properties that typically fall below the radar of its institutional peers. Over the past 12 months 29th Street Capital has also acquired 17 conventional multifamily assets and continues to actively pursue additional opportunities throughout the U.S.
29SC’s conventional multifamily portfolio currently consists of more than 7,600 units having acquired over 12,400 units across its 14 offices in the U.S. Investments typically require approximately $10 million to $100 million of total capital and involve the acquisition or recapitalization of individual real estate assets, portfolios or platforms.