Arden-Arcade Apartments Sell for $27.5 Million; Upgrades Underway
Before selling The Falls at Arden, previous owner Embarcadero Capital Partners completed about $1.7 million worth of exterior renovation to the 272 units. Jason Parr of Cushman & Wakefield said in anticipation of a sale, Embarcadero also did a “test” interior renovation of about 45 units.
“It proved there was upside,” said Parr, director of Cushman & Wakefield’s multifamily team in Northern California.
New owner Fowler Property Acquisitions LLC, based in Southern California, bought the property for $27.5 million, closing escrow in the last week. Parr said Fowler will complete the interior renovations, push rents and stabilize the property further.
Built in 1986, Falls at Arden has 72 studios, 144 one-bedroom and 56 two-bedroom units. Amenities include a pool, two spas, fitness center with sauna, resident clubhouse with movie theater, lounge, billiards room and business center. At the time of sale, occupancy was about 96 percent for the property, at 2345 Northrop Avenue. Parr said about 30 percent of the residents attend school at nearby California State University Sacramento.
“It’s a very well-managed property with institutional ownership,” he said. “Just the timing in the cycle, the ownership felt it was an appropriate time to sell.”
Parr said the sale also reflects the ongoing trend of capital from outside the market looking for Sacramento value-add opportunities. Market fundamentals such as rent growth — which is among the strongest in the U.S. over the last yea — are the reason why, he said.
“And you have a supply/demand imbalance in construction,” he added. “This was just a very middle-of-the fairway value-add buy.”