By Jon Peterson
29th Street Capital, a real estate investment firm with offices in San Francisco and Chicago has paid $61 million to acquire the 417-unit River Blu Apartments in Sacramento, according to sources familiar with the property. That pricing comes to around $146,283 per unit.
The seller of the building was Concord-based JCM Partners. The real estate investment firm was represented in the transaction by the Northern California Multi-family Advisory Group of Cushman & Wakefield. The people working on the sale were Jason Parr and Scott MacDonald. Cushman & Wakefield declined to comment.
This sale was accomplished as an off-market transaction, and the asset was sold as an un-renovated property. The new owners are planning to invest an additional $4.3 million above the purchase price to work in capital improvements. The work will focus primarily on unit renovations, clubhouse upgrades and amenity enhancements. Kitchens will get stainless steel appliances, vinyl flooring and upgraded cabinets. The bathrooms will also be improved.
The River Blu apartment complex is located at 8795 La Riviera Drive in Sacramento. It is next door to another apartment complex that was recently sold by JCM Partners. This was the 268-unit La Riviera Commons apartment complex located at 8719 Woodman Way. JCM sold that property earlier this year to San Francisco-based Ridge Capital Investors and Greenwich, Conn.-based Contrarian Capital Management for $39.5 million, or $147,388 per unit.
29th Street Capital is a privately-owned real estate investment firm. It seeks properties that have a value-add play and will typically fall below the radar of its institutional peers. It looks for apartments throughout the United States and over the past year it has closed on the acquisition of 17 apartment properties.