Sacramento, Calif. (May 31, 2019) – 29th Street Capital (29SC), a privately-held real estate operator, has acquired Terrace at Fair Oaks Apartments, a 1972 vintage, 76-unit multifamily community located in Carmichael. 29SC plans to invest approximately $11,000 per unit in capital improvements. Interior upgrades include stainless steel appliances, durable flooring, improved cabinets, fresh paint and energy-efficient plumbing fixtures. Exterior renovations will focus on window replacements, parking lot improvements and landscaping upgrades.
“We think the Carmichael submarket offers a great living area in the Sacramento region,” said Casey Davis, Senior Vice President of Acquisitions in Northern California. “The area is quickly transitioning into a desirable alternative to the high rents seen in other submarkets throughout the region.”
Sacramento has had positive net migration in recent years due to residents relocating from other California cities, with large concentrations moving from the Bay Area and San Francisco. At the end of 2018, Sacramento had an unemployment rate of 3.6% which was below both the state and national averages.
“Terrace at Fair Oaks is in the highly-regarded San Juan Unified School District,” Davis added. “We are excited to offer a high-quality renting option where tenants benefit from the thriving Carmichael submarket and the area’s great schools.”
The property is immediately west of Fair Oaks Blvd. and adjacent to a Smart and Final Extra! grocer. Other nearby conveniences include Carmichael Park, Safeway, Rite Aid, Walgreens and Wells Fargo.
This is 29SC’s third acquisition in the Sacramento area in the past 12 months and the sixth in the past two years. Over the past year, 29th Street Capital has also acquired 15 conventional multifamily assets throughout the U.S. and continues to actively pursue additional opportunities.
The transaction closed May 31. The sale price and seller were 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.
29SC’s conventional multifamily portfolio currently consists of more than 8,500 units having acquired over 14,850 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.