(Save the date: RealShare Apartments East comes to the Hyatt Regency Miami, Florida on February 26th, 2013)
FRESNO, CA-GlobeSt.com exclusively reported earlier today that Omninet Capital of Beverly Hills has purchased a four property multifamily portfolio in Fresno, CA totaling 410 units for $14.76 million. According to David Nagel, president and CEO of seller Decron Properties, “the disposition of this portfolio completes the execution of our business plan.”
Nagel explains that the firm purchased the properties as an REO in 2011. “At the time the properties suffered from deferred maintenance and over 20% vacancy,” he says. “One property was almost 30% vacant. In our 21 months of ownership, we spent hundreds of thousands of dollars on capital improvements and increased occupancy to over 90%.”
The assets were marketed by listing brokers Robin Kane, Dean Zander, Vince Norris, and Gordon Larkin of Hendricks & Partners, and according to Zander, the team was contacted by more than 100 interested parties “comprised of a wide variety of investors, including value-add renovation experts, pension advisors, syndicators, affordable housing operators, and high net worth private owners.”
Zander noted the offering was exceptionally well-received by the investment market “due to the extremely aggressive cap rates and per-unit prices being achieved throughout Southern and Northern California, making the ‘Central Valley’ appear very attractive by comparison.” He adds that “With new construction, improved employment numbers and a growing tenant base, Fresno and surrounding communities will continue to strengthen and improve.”
According to Michael Daniel, a managing partner of Omninet Capital, who was responsible for overseeing the acquisition, the Fresno acquisition is a solid addition to the firm’s existing multifamily portfolio. “We are looking to purchase an additional $200 million in multifamily properties in 2013 and continuing the trend in the coming years,” he says. “We have built a reputation in the real estate community as an all cash buyer with the ability to close quickly, which helps facilitate a smooth transaction for all parties involved.”
The communities included Cedar Creek, a 106-unit property built in 1980; Redwood Canyon, 92 units built in 1971; Sequoia Ridge, 80 units built in 1971; and Sycamore Heights, 132 units built in 1974.