SACRAMENTO, CA - Security Properties purchased Sycamore Terrace, a 244-unit property built in 2006 and located in Sacramento, CA for $57,400,000.
The property was originally developed in 2006 and consists of 11 three story residential buildings spread out over more than 11 acres. The property is located in the Pocket suburb of Sacramento, approximately 10 minutes SW of the downtown core. Sycamore Terrace is walkable to the local and high-end Nugget Markets and residents enjoy fast I-5 access to employment centers in the CBD and Elk Grove.
Sacramento's MSA continues to experience rapid in-migration and job growth in the face of a very supply-constrained multifamily market. In fact, corroborated with data from REIS, Sycamore Terrace is the only institutional multifamily property delivered in the submarket since the early 1990's. With no planned developments, and given land use and construction costs, it should remain as the newest construction in the submarket for the foreseeable future. This should allow Sycamore Terrace to experience positive and outsized rent growth as large and exciting projects like the Downtown Commons and the Delta Shores power center push Sacramento forward.
One of the property's most unique features is its spacious units. At an average of 1,041 square feet, the floor plans at the property are significantly larger than its competitors. In addition, it is the only asset in the competitive set to feature 9' ceilings and dedicated in-unit laundry rooms. Sycamore Terrace also features a 5,000+ sq-ft clubhouse and is one of only two properties in the vicinity to offer garages, both of which should offer long-lasting appeal to existing and future tenants.
Sycamore Terrace represents a value-add investment with moderate interior and exterior renovation characteristics. Security Properties plans to renovate all units with stainless steel appliances, new flooring and countertops, and a variety of other features while completing an extensive clubhouse reposition.
According to Beau Madsen, Manager at Security Properties, the acquisition was made because, "Sacramento, and this submarket in particular, is expected to outperform for the foreseeable future due to a strong and diversifying job market, population in-migration, and positive supply/demand characteristics. Through a thoughtful renovation, this asset will be well positioned to capitalize on the market's growth while providing current and future tenants an improved renting experience."
The property will be managed by Security Properties Residential.
Source: Security Properties / #Apartments #Multifamily