Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

SACRAMENTO-The 195-unit Savannah Court apartments here has changed hands for $17.75 million, or just under $90,000 per unit. The new owner, SVN Equities, plans to get final approval for the units’ resale as condominiums and then sell the asset to a condo converter. The seller was a private investor from Del Mar.

Savannah Court was built in the late 1980s. The 24-building, garden-style development contains one- and two-bedroom units that rent for between $550 and $825 per month. The complex is 91% occupied. The site address is 4337 Norwood Ave.

SVN Equities officials say the company plans to finalize the existing condo map on the property and bring the property back to market as a conversion play by the end of the year. Steven Rodick, a condo conversion consultant at CCI in San Diego is facilitating the map process.

David Harrison of Sperry Van Ness in Sacramento represented SVN Equities and also will have the disposition assignment. Don Meagher of Coastal Exchange represented the seller.

Harrison tells GlobeSt.com that the value of the complex when it is conversion ready will be between $125,000 and $130,000 per unit. That would translate to a sale price of between $24 million and $25 million.

The converter would then want to sell off the units at a price point that results in gross sales that are about double what it paid for the asset. After costs, such as unit and site upgrades, sales commissions and insurance, the goal is generally for a 25% to 40% return.

According to Harrison, this is SVN Equities’ first apartment acquisition.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS Fall 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.