SACRAMENTO—Pointing to continued population and job growth, combined with close proximity to the Bay Area, Sacramento continues to lead with strong market dynamics. Coupled with the fact that very few apartments have been built in the past several years means investors have high interest in the area.
As such, Pathfinder Partners recently acquired Savannah Court, a 195-unit multifamily community located at 4337 Norwood Ave. for approximately $22 million. The property was acquired from CIP Savannah LLC, a Delaware LLC, and represents Pathfinder's second acquisition in the Sacramento area.
“In 2016, Sacramento experienced nearly 13% year-over-year rent growth, ranking first nationally, and these strong fundamentals are expected to continue over the next several years,” says Mitch Siegler, senior managing director of Pathfinder Partners. “The strong trends driven by continued population and job growth, combined with Sacramento's proximity to the San Francisco Bay Area, make this a city with very strong market dynamics.”
Built in 1986, the 24-building community features distinctive southern architecture and is situated on 8.9 acres. Residences include 107 one-bedroom/one-bathroom units, 44 two-bedroom/one-bathroom units and 44 two-bedroom/two-bathroom units–all averaging 700 square feet. Savannah also contains a variety of community amenities such as a fitness center, a swimming pool and spa, a tennis court and covered parking.
Adding to the community's appeal, Siegler said, is its “tranquil park-like setting and central location. Our business plan is to complete comprehensive interior and exterior renovations aimed at modernizing the property as well as add several resident amenities.”
The transaction was brokered by Marc Ross of CBRE, who represented both Pathfinder and the seller.
“We see several demand drivers. Sacramento is just one hour from the San Francisco Bay Area, which is characterized by some of the most expensive housing and highest wages in the country. Workers are moving outside of the Bay Area and commuting to save on housing. Companies are also locating outside of San Francisco to reduce occupancy costs, especially for back-office operations. The combination is driving population of job growth in Sacramento. Of course, Sacramento is also the capital of California and government employment continues to be very stable,” Siegler tells GlobeSt.com. “On the supply side, there are many barriers to new construction and development in California, and Sacramento is impacted by these supply constraints–very few apartments have been built in the past several years.”
Headquartered in San Diego, Pathfinder Partners was founded by Lorne Polger and Mitch Siegler in 2006 to make opportunistic investments in distressed real estate assets and value-add properties.
SACRAMENTO—Pointing to continued population and job growth, combined with close proximity to the Bay Area, Sacramento continues to lead with strong market dynamics. Coupled with the fact that very few apartments have been built in the past several years means investors have high interest in the area.
As such, Pathfinder Partners recently acquired Savannah Court, a 195-unit multifamily community located at 4337 Norwood Ave. for approximately $22 million. The property was acquired from CIP Savannah LLC, a Delaware LLC, and represents Pathfinder's second acquisition in the Sacramento area.
“In 2016, Sacramento experienced nearly 13% year-over-year rent growth, ranking first nationally, and these strong fundamentals are expected to continue over the next several years,” says Mitch Siegler, senior managing director of Pathfinder Partners. “The strong trends driven by continued population and job growth, combined with Sacramento's proximity to the San Francisco Bay Area, make this a city with very strong market dynamics.”
Built in 1986, the 24-building community features distinctive southern architecture and is situated on 8.9 acres. Residences include 107 one-bedroom/one-bathroom units, 44 two-bedroom/one-bathroom units and 44 two-bedroom/two-bathroom units–all averaging 700 square feet. Savannah also contains a variety of community amenities such as a fitness center, a swimming pool and spa, a tennis court and covered parking.
Adding to the community's appeal, Siegler said, is its “tranquil park-like setting and central location. Our business plan is to complete comprehensive interior and exterior renovations aimed at modernizing the property as well as add several resident amenities.”
The transaction was brokered by Marc Ross of CBRE, who represented both Pathfinder and the seller.
“We see several demand drivers. Sacramento is just one hour from the San Francisco Bay Area, which is characterized by some of the most expensive housing and highest wages in the country. Workers are moving outside of the Bay Area and commuting to save on housing. Companies are also locating outside of San Francisco to reduce occupancy costs, especially for back-office operations. The combination is driving population of job growth in Sacramento. Of course, Sacramento is also the capital of California and government employment continues to be very stable,” Siegler tells GlobeSt.com. “On the supply side, there are many barriers to new construction and development in California, and Sacramento is impacted by these supply constraints–very few apartments have been built in the past several years.”
Headquartered in San Diego, Pathfinder Partners was founded by Lorne Polger and Mitch Siegler in 2006 to make opportunistic investments in distressed real estate assets and value-add properties.
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