Sacramento, Calif. (October 16, 2019) – 29th Street Capital (29SC), a privately-held real estate investment and advisory firm, announces a brand-new multifamily development project. The firm plans to develop Broadway Apartments containing 444 one- and two-bedroom apartments, with later plans to develop a second phase. The development is in The Mill at Broadway master planned community in Sacramento, California.
The development, covering more than nine acres, is in the heart of one of Sacramento’s qualified opportunity zones. Opportunity zones, created by the Tax Cuts and Jobs Act of 2017, are designated areas that provide significant tax savings for investing in certain underserved communities. Broadway Apartments will be one of the first opportunity zone developments in the city of Sacramento.
“We are excited to be able to provide quality housing for Sacramento’s working professionals while also creating an investment vehicle that will be beneficial to our investors while deploying capital in one of Sacramento’s underserved communities,” said 29SC’s Managing Principal Robb Bollhoffer.
“The goal of the development is to repurpose the land and create an inviting neighborhood in an area that has been historically industrial, while not denying its history,” said Kevin Smith, who joined 29SC in March as Senior Vice President of Development for Northern California. A prime example of this is seen in the design of the 13 apartment buildings, which reflect the look of the neighborhood while adding new elements to give a residential feel.
Construction is slated to start in early 2020, with the first apartments anticipated to be ready for move-ins by late 2020. The entire community is scheduled to be completed by the end of 2021. The target market includes young working professionals, so the majority of the apartments are one-bedrooms.
Interiors will feature stainless steel appliances, quartz countertops, energy-efficient LED lighting packages and vinyl plank flooring. The community will have outdoor grilling stations, a fitness center, and access to the amenities in the Mill at Broadway community.
The Mill at Broadway is a five-phase master-planned community which, in addition to Broadway Apartments, contains the Mill at Broadway Homes, a for-sale home community with more than 300 single-family, duplex and condo homes. The public community space will feature amenities for residents including a park, community market, food hall, jogging trail access, an urban farm and an amphitheater.
Sacramento is growing rapidly, as people relocate from the Bay Area and other parts of the state. Its population surpassed 500,000 for the first time in 2018, and it is the fourth largest MSA in California. Casey Davis, 29SC’s Senior Vice President of Northern California, says the city is “a rapidly expanding market as companies and people are increasingly relocating to the area.”
Robb Bollhoffer and Kevin Smith, of 29SC, have created a well-integrated and focused team to spearhead the development of both phases of The Mill. RRDC, Inc. was brought on as the co-developer of the project; their team has managed the development of The Mill at Broadway since its inception in 2009. Sacramento-based architecture and design firm, JD+A, has been enlisted to head up the design and architectural drawings for Broadway Apartments.
About 29th Street Capital
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 16 conventional multifamily assets and continues to actively pursue additional opportunities throughout the U.S.
29SC’s conventional multifamily portfolio currently consists of more than 9,000 units having acquired over 16,000 units across its 15 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.