SAN FRANCISCO, CA -- Ridge Capital Investors, LLC and an affiliate of Andell Inc. have acquired Sierra Fair Apartments, a 204-unit property for $22.35 million. The Class B property is situated in the highly amenitized southern Arden-Arcade submarket of Sacramento, a convenient, in-fill, “A+” location near the region’s most affluent housing communities, including Arden Park, Sierra Oaks, and Arden Park Vista, as well as its most popular and luxurious shopping centers.
Sierra Fair was originally developed in 1963 and is a well maintained, 96% occupied property. In keeping with the newer, high-end retail and lifestyle developments in the immediate area, Ridge plans a significant interior and exterior transformation of the property to bring it up to one of the most sought-after places to live in the area. New amenities such as two clubhouses, outdoor entertaining areas, and a state of the art fitness center will deliver the best that the area has to offer.
A primary driver of the investment for Ridge is the very healthy Sacramento housing dynamic, which positioned the region to the number one rental growth market in 2016, and to a top-five projection for 2017. Much of this performance is a result of excellent job growth fundamentals, yet very low delivery of new housing inventory this cycle. Year over year rental growth exceeded 7% per Yardi Matrix and the immediate neighborhood is expected to achieve double digit rent growth in 2017. Unemployment in the region has fallen to 5%, led by private sector growth in healthcare and technology.
FPI Management will provide management services for the partnership. FPI is one of the largest multifamily property management companies in the nation, managing over 100,000 units in 13 states.
Marc Ross of CBRE represented the seller of the property
Ridge has acquired over $500 million of office and apartment properties in northern California since 2012 and this is Ridge and Andell’s third joint venture investment in Sacramento in the last three years. Ridge Capital Investors, LLC, a real estate investment and operating firm located in San Francisco, CA, invests in multifamily and commercial properties throughout Northern California. Founded by Trevor Wilson and principals Brian Printz, Thomas Daniel, and David Karol, the company focuses on opportunities where it can create significant value by capitalizing on the investment team’s collective experience in over $2.5 billion of real estate investment and development over the past 20 years.
Andell Inc. is a Los Angeles, CA-based private investment firm and family office with global business and investment interests. Andell’s current activities include direct and indirect investments in public and private companies, real estate, and partnerships with best in class global investment managers. Andell’s real estate platform seeks to generate superior risk-adjusted returns through a variety of investments across all asset classes, including, but not limited to, portfolio and property acquisitions, joint and programmatic ventures, preferred equity, recapitalizations, operating companies, and debt and equity securities. Andell has created a culture and structure that values its partners, generating opportunities for long-term relationships and growth across all of its investing platforms.