DAVIS, CA-GlobeSt.com has exclusively learned that of two significant multihousing properties in the City of Davis have changed hands.
Meadow Ridge Apartments, an 84-unit garden-style community, sold for $11.15 million and a 4.88% going-in capitalization rate to a Sacramento-based private investor.
Oakshade Commons, a mixed-use student housing property, sold for $17.544 million to a Bay Area based investment firm, setting a price per unit record for the City of Davis and the Greater Sacramento Region, according to CBRE’s Sacramento multihousing group, which negotiated the sales.
The CBRE team led by Marc Ross and William Blucher represented the sellers in both transactions. “The Davis apartment market is highly sought after by investors because of its favorable supply/demand dynamics that are a by-product of the town’s no-growth development policies and steadily increasing demand generated by UC Davis,” explains Ross.
According to Ross, he anticipates “continued rent growth and healthy fundamentals in Davis for years to come.
Meadow Ridge was developed by Pacific Scene in 1986 and is located adjacent to a grocery-anchored shopping center in a submarket of Davis. Over 40% of the units have a single-level design, and at 14 units per acre, Meadow Ridge Apartments is one of the lowest density multi-housing communities in Davis.
The property was on the market for only 13 days, says CBRE, and was able to generate nearly 20 offers. The winning bid exceeding the list price and included an immediately non-refundable deposit.
Oakshade Commons was built by Petrovich Development in 2001 and is ideally positioned less than one mile from UC Davis and directly across the street from a Safeway-anchored shopping center. The property consists of two commercial condominiums and 42 residential condominiums offering two, four and five bedroom townhouse style floor plans, which are an ideal match for the Davis student housing profile.
According to CBRE the property was completely renovated in 2007 to condominium specifications including granite countertops, stainless steel appliances, designer hardwood floors and in unit washer/dryers. The buyer closed escrow within 13 days from executing the PSA.