Well-Positioned Multifamily Asset in Sacramento Changes Hands
- Aug 07, 2015
By Adriana Pop, Associate Editor
ARA, A Newmark Company (ARA Newmark) facilitated the sale of 3310 Apartments, a 384-unit garden-style multifamily community in Sacramento, CA.
Prometheus, based in San Mateo, CA sold the property to The Garibaldi Co. for $35 million. Both the seller and the buyer were represented by the ARA Newmark team led by San Francisco-based Executive Managing Director Mark Leary.
3310 Apartments ranks as one of the largest multifamily communities in the South Natomas area of Sacramento. The property was built in 1985 and offers a mix of one-, two- and three-bedroom apartments across 20 acres of land, with a density of only 19 units per acre.
Situated just one mile from the I-80 on-ramp, two miles from I-5 and less than ten minutes from downtown Sacramento, 3310 Apartments offers residents easy access to major employers in the area.
Prior to the sale, Prometheus invested in minor interior improvements to the property, which led to slight rental increases. The Garibaldi Company now plans additional upgrades that will address building exteriors and common areas. The Stockton, CA-based company also owns the 520-unit Laurel Oaks apartment community in Sacramento, which spreads across 23 acres.
Both assets are well-positioned in the market, especially since the greater Sacramento region has experienced a 9.1 percent year-over-year rent growth in the 12-month period ending Q1 2015, while vacancy shrunk to 3.2 percent within the same time period.
3310 Apartments is located just north of downtown Sacramento in the South Natomas Area, one of the top market performers in the region where annual rent growth climbed nearly $150 on average in the 12-month period ending Q1 2015. This increase led to an average market rent of $1,128, while vacancy declined 60 basis points to 3.1 percent during the same time period.
Meanwhile, development of new apartments for rent in Sacramento remains limited, in spite of a declining vacancy and surging rent growth. 670 units were delivered in 2014 and only 118 units are scheduled to come online in 2015. These trends, coupled with the return of strong job growth, keep the market in a position of continued revenue growth.