SACRAMENTO, CA—Brokerage firm ARA has closed the sale of The Eleven Hundred Apartments, a 1962-vintage 565-unit garden-style apartment community here that brought $44 million.
The Atlanta-based firm represented both the seller, Acacia Capital based in San Mateo, CA, and the buyer, Virtú Investments, Larkspur, CA. The sale price equates to $77,876 per unit or $101 per square foot.
The ARA Pacific team, led by San Francisco-based principals Mark Leary and Kyle Suryan, served as the exclusive advisors on the transaction.
“Virtú is excited to have acquired an established and well-located community that offers such a clear opportunity for high-impact renovations”, said Scott McWhorter, a principal of Virtú Investments. “The Sacramento apartment market has been surging and we expect continued strength in the years ahead. The Eleven Hundred will be perfectly positioned to take advantage of this dynamic market.”
The Eleven Hundred offers an appealing combination of apartments and townhouses set on a beautiful 33-acre site amid mature landscaping. The property has a tremendous value-add renovation and repositioning opportunity due to well-designed and aesthetically appealing floor plans combined with its low-density site plan, which has only 18 units per acre.
While some of the property's interiors have been updated by the seller, many still have significant potential upside.
The Eleven Hundred enjoys an excellent location within the Arden Arcade neighborhood of Sacramento. The majority of the residential and commercial product in Arden Arcade was constructed during the 1960's and 1970's, and the area is largely built-out. With little to no land remaining for medium to high-density multifamily development, the demand for well-located rental housing in this neighborhood is forecasted to soon outpace supply.
“This attractive supply-constrained feature is anticipated to benefit owners of existing communities, like The Eleven Hundred, with strong occupancy rates, above average rent growth and steady increases in value,” said Leary.
The Eleven Hundred was 96% occupied at the time of sale.
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