Sacramento, Calif. (October 21, 2020) – 29th Street Capital (29SC), a privately-held real estate investment and advisory firm, has acquired Amber Park Apartments and Davenport Apartments totaling 248 units in Sacramento, California. 29SC plans to make improvements to unit interiors, including adding high-quality laminate countertops, vinyl plank flooring, modern paint schemes and stainless-steel appliances. The firm also plans value-creating improvements to the amenities, roofing and curb appeal at both properties.
“These properties will be strong additions to our current Northern California portfolio and will bring our total unit count to over 1,500 in this market,” said Casey Davis, Senior Vice President of Acquisitions for North California. “I look forward to continuing our growth in Sacramento and have high expectations for the performance of these assets.”
The Sacramento area is currently experiencing strong population and employment growth. California’s Department of Finance stated that Sacramento ranked second among California’s large cities in population growth over the last year. This 1.1% growth rate is more than five times the state average.
“29SC believes that the strong migration to the Sacramento area will continue due to high living costs in nearby major cities and will bolster demand for multifamily housing,” said Davis. “The properties are well positioned to many nearby employers of resilient job sectors such as government, education, healthcare and transportation/utilities.”
The assets, which are 13 miles apart, are both within 10 miles of downtown Sacramento. Both Amber Park Apartments, which has 122 units, and Davenport Apartments (126 units) offer close proximity to major retailers, shopping and restaurants. Amber Park offers residents easy access to downtown via the Watt/I-80 Light Rail Transit Station, which is within one mile of the property. The residents at Davenport have access to the Sacramento Regional Transit Riverside route, allowing them a direct route to downtown as well.
Over the past 12 months, the Sacramento Metro Area has shown resilience, despite the COVID-19 pandemic, with positive trends in vacancy rates for multifamily units. As of 8/31/20, Sacramento’s average occupancy was 95.4% compared to the US national average of 93.5% according to Yardi Matrix Data.
29th Street Capital closed on the purchase of these two properties October 21. The sale price and seller were not disclosed. Formed in 2009, 29th Street Capital is a privately-held real estate investment firm that focus on value-add and development of multifamily assets with a current portfolio of more than 11,000 units having acquired over 19,000 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.