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ROSEVILLE, CA-Rosemeade at Olympus Pointe, a 465-unit apartment complex in this Sacramento suburb has changed hands for $63.5 million [$136,559 per unit], according to county property records. The new owner is a joint venture of the San Diego-based ConAm Group of Companies, which owns 8,300 units in Northern California, and an investment fund of Urdang, a Plymouth Meeting, PA-based investment management division of BNY Mellon Asset Management.

The 38-building development sits on 31 acres at 1451 Rocky Ridge Dr., adjacent to an office development, a retail center and high-end housing. The buildings surrounded a central common area with a large clubhouse and pool. The units each have their own garage and full-size washer and dryer. It opened in 1992 and is currently 97% leased.

The new ownership plans to invest an additional $5.5 million to substantially renovate the property, both the individual units and the common areas, and then push rents. If things go as planned, the investment should help raise the cap rate on the investment to approximately 7% upon re-stabilization, which would represent an increase of a little more than 100 basis points, according to a source familiar with the transaction.

CBRE /Sacramento had the disposition assignment. Neither the brokers nor the new ownership were immediately available Tuesday afternoon for comment. In a prepared statement, Urdang VP Jeffrey Reder says the business plan “is to capitalize on the asset’s strong existing characteristics which include a great location, visibility, proximity to significant employment centers and its inclusion in the Eureka School District.” Adds ConAm SVP Rob Singh: “The property has a great design and amenity package.”

An affiliate of ConAm is the managing member of the joint venture entity. ConAm total operational portfolio is approximately 50,000 units including approximately 5,200 units (11 properties) in the greater Sacramento area.

Urdang invested its portion of the equity in the deal through UVAF II, a $436-million (equity) real estate investment vehicle formed to acquire office, retail, multifamily and industrial properties with $20 million to $75 million of total capitalization throughout the United States. To date, the fund has acquired nine properties with an aggregate capitalization in excess of $500 million. At 65% leverage, the fund has approximately $1.3 billion in purchasing power.

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