Rancho Cordova, CA. (January 26, 2018) – 29th Street Capital (29SC), a privately-held real estate investment and advisory firm, has acquired Sycamore Square Apartments, a 140-unit multifamily community in Rancho Cordova, California. 29SC plans to implement a $1.2 million capital improvement program to renovate interiors, enhance the exterior and improve the amenities, which will include pool and clubhouse upgrades. Sycamore Square is approximately 10 miles east of downtown Sacramento.
“I’m pleased to continue our expansion in Sacramento and execute on our capital improvement plan,” said Casey Davis, 29SC’s Senior Vice President of Acquisitions for Northern California. “We will now be able to leverage local relationships to improve our operations across all of our properties.”
The entire Sacramento region is experiencing robust population growth. The population is expected to increase by 47% over the next 30 years. The Rancho Cordova submarket grew by nearly 9% from 2012-2016. Meanwhile, new construction has been lagging behind demand, leading to increasing renter demand.
“Our team is excited to capture some of this remarkable growth,” Davis added. “Sacramento is a rapidly improving market and we are happy to find a value-add property in a neighborhood with limited forecasted construction.”
The transaction closed January 26. The sale price was not disclosed.
29th Street Capital acquired 14 multifamily assets over the past 12 months and continues to actively pursue additional opportunities throughout the U.S. The firm will continue to target strategic value-add deals that are below the institutional radar, with the intention of offering its investors above-market returns.
Formed in 2009, 29SC is a privately-held real estate investment and advisory firm that employs a value-added investment strategy in acquiring properties that fall below the radar of institutional peers. 29SC’s multifamily portfolio consists of more than 7,000 units and it has acquired over 10,800 units across its 14 offices in the U.S. Investments typically require approximately $10 to $70 million of total capital and involve the acquisition or recapitalization of real estate assets, portfolios or platforms.