SAN FRANCISCO, CA - Ridge Capital Investors, LLC and Contrarian Capital Management, LLC have acquired from JCM Partners two suburban Sacramento, CA apartment communities totaling 268 units in separate transactions totaling $39.5 million.
La Riviera Commons, located at 8719 Woodman Way, and Antelope Woods located at 6413 Tupelo Drive, are both Class B apartment communities built in 1975 and 1986 respectively. The ownership group will execute a significant renovation program across the two-property portfolio that will consist of substantial improvements to unit interiors and exteriors, as well as upgrades to property amenities, branding and signage. Upon completion, the properties will compete directly with comparable Class B+ and A- properties. These investments are the 5th and 6th apartment acquisitions by Ridge in the Sacramento region since 2014, representing an investment of nearly $100 million.
A primary driver for Ridge’s investment is the very healthy Sacramento housing dynamic, which has positioned the region to a top tier rental growth market over the last five years. Much of this performance is a result of excellent job growth fundamentals coupled with very low delivery of new housing inventory this cycle. According to commercial real estate research firm Yardi Matrix, year-over-year rental growth in 2017 exceeded 7% and the immediate neighborhoods are expected to achieve high single-digit rent growth in 2018 as well. Unemployment in the region has fallen to below 4%, led in part by private sector growth in healthcare and technology.
Ridge has engaged FPI Management, Inc. to provide third-party management services for both communities. FPI is the 5th largest multifamily property management companies in the nation, managing more than 110,000 units in 13 states.
Marc Ross of CBRE represented the seller on La Riviera Commons. Steve Nelson, Dusty Haeling, Phil Saglimbeni, Sal Saglimbeni and Ken Blomsterberg, of Marcus & Millichap/IPA represented the seller on Antelope Woods.
Ridge has acquired more than $700 million of office and apartment properties in northern California since 2012. This is Ridge and Contrarian’s 6th and 7th joint venture investment together.
About Ridge Capital Investors, LLC: 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 $2.75 billion of real estate investment and development over the past 20+ years.
About Contrarian Capital Management, LLC: Contrarian Capital Management, L.L.C, a distressed investing specialist, was established in 1995 by Jon Bauer, Janice Stanton and Gil Tenzer. The firm manages over $5 billion in assets and employs 62 professionals across offices in Greenwich (CT), Paris, London, São Paulo, and Hong Kong. Distressed real estate investing has been a key focus for Contrarian since the inception of the firm. Gil Tenzer is a 30-year real estate veteran and spearheads the efforts of the firm in the real estate sector. Contrarian seeks opportunities in which commercial real estate and real estate debt can be purchased at a significant discount to intrinsic value. Contrarian’s ability to underwrite, conduct due diligence and close transactions quickly, combined with a strong network of local operating partners, make the firm a preferred counterparty for sellers that need certainty of execution.