Multifamily Purchase Solidifies ColRich’s Sac Commitment
ColRich’s recent $36.25 purchase of 220-unit The Luxe multifamily community makes more than 1,100 units in the Sacramento MSA owned by the firm and one of the largest in Q2 totaling 164,840 square feet.
SACRAMENTO—ColRich’s recent $36.25 purchase of The Luxe multifamily community further solidifies the company’s commitment to the Sacramento market, along with other companies in what some have described as a Bay Area exodus. ColRich now owns more than 1,100 units in the Sacramento MSA.
This was an off-market transaction that included two loan assumptions and a 1031 exchange for ColRich. The seller of the property was Southern California-based Latitude Real Estate Investors.
The asset is located roughly 15 minutes from downtown Sacramento and comprised of two separate parcels: 2501 Hurley Way and 2510 Wittkop Way. The 220-unit multifamily asset totals 164,840 square feet.
Newmark Knight Frank managing director Zachary LeBeouf and senior managing director Anthony Pappageorge represented ColRich in the sale.
“As far as number of units is concerned, this is one of the largest multifamily transactions in Sacramento during the second quarter of 2019,” said LeBeouf.
This is the second 200-plus unit transaction sold by LeBeouf and Pappageorge in the second quarter and the sixth transaction the team has sold in the Sacramento market in the past 18 months.
“The Sacramento multifamily niche is still clearly benefiting from the Bay Area’s general exodus, driven principally by the high cost of living,” LeBeouf tells GlobeSt.com.
GlobeSt.com learns there are indeed a few companies that have recently left the Bay Area and relocated to the Sacramento region:
Penumbra Inc.–8040 Foothills Blvd., Roseville–the 157,518 square foot transaction was brokered by Cushman & Wakefield.
Global headquarters of Applied Spectra Inc.–950 Riverside Pkwy. #80/110, West Sacramento–NKF’s Kevin Jasper and Skip Vanderbundt represented the landlord.
Zennify LLC–1755 Creekside Oaks Dr. #280, Sacramento–NKF’s Tom Heacox, Matt Heacox and Elaine Hartin represented the landlord.
According to the Greater Sacramento Economic Council, Zennify moved to Sacramento rather than other West Coast regions due to talent. The firm recruited and vetted technical talent in two prospective cities: Sacramento and Salt Lake City. However, Sacramento surpassed expectations with an optimal balance of “just about everything” and the ability for startups to rapidly scale, GlobeSt.com learns.