Napa Multifamily Asset Commands $58M
- Feb 26, 2015
In a $58 million deal, a joint venture of Security Properties and Intercontinental Real Estate Corp. has acquired Saratoga Downs Apartments, a Class A multifamily asset in Napa. The deal marks the eighth acquisition for Security Properties Multifamily Fund II.
One of only five Class A assets in Napa, the property features garden-style apartments and newly constructed townhomes. Seth Siegel and Jason Parr of Cushman & Wakefield Inc. arranged the transaction, acting on behalf of both buyer and seller.
Located about two miles from downtown Napa, Saratoga Downs was developed on land previously occupied by Shevland Ranch, a former horse farm and race track. Its 124 apartments were constructed in 2006, followed by 54 townhomes in 2012. In a reflection of the property’s history, a reconstructed barn serves as its clubhouse and leasing office. Saratoga Downs also neighbors the Napa Yacht Club.
“The North Bay has been a target market for several years as cap rates are higher and supply is restricted compared to adjacent submarkets,” noted Mark Hoyt, senior director of investments at Security Properties, in a statement. “It is extremely difficult to build new product in Napa, evidenced by the fact only two market-rate apartment properties have been delivered in the past decade, with two more projected to be delivered in the next decade.”