Buyer Plans for Renovation and Repositioning of the Combination Apartment and Townhome Community Valued at $44,000,000
Sacramento, CA (January 21, 2015) — Atlanta-headquartered ARA, the largest privately-held, full-service investment advisory brokerage firm in the nation focusing exclusively on the multihousing industry, announces the sale of The Eleven Hundred Apartments, a 565-unit garden-style apartment community located in Sacramento, CA.
The ARA Pacific team, led by San Francisco-based Principals Mark Leary and Kyle Suryan, served as the exclusive advisors on the transaction representing both the seller, Acacia Capital based in San Mateo, CA, and the buyer, Virtú Investments based in Larkspur, CA. The property sold for $44,000,000, $77,876 per unit or $101 per square foot.
Built in 1962, The Eleven Hundred offers an appealing combination of apartments and townhouses set on a beautiful 33-acre site amid mature landscaping. The property has a tremendous value-add renovation and repositioning opportunity due to well-designed and aesthetically appealing floor plans combined with its low-density site plan, which has only 18 units per acre. While some of the property’s interiors have been updated by the seller, many still have significant potential upside.
The Eleven Hundred enjoys an excellent location within the Arden Arcade neighborhood of Sacramento. The majority of the residential and commercial product in Arden Arcade was constructed during the 1960’s and 1970’s, and the area is largely built-out. With little to no land remaining for medium to high-density multifamily development, the demand for well-located rental housing in this neighborhood is forecasted to soon outpace supply. Mark Leary of ARA stated, “This attractive supply-constrained feature is anticipated to benefit owners of existing communities, like The Eleven Hundred, with strong occupancy rates, above average rent growth and steady increases in value.”
“Virtú is excited to have acquired an established and well-located community that offers such a clear opportunity for high-impact renovations”, said Scott McWhorter, a principal of Virtú Investments. He followed-up by saying, “The Sacramento apartment market has been surging and we expect continued strength in the years ahead. The Eleven Hundred will be perfectly positioned to take advantage of this dynamic market.”
The Eleven Hundred was 96% occupied at the time of sale.
To schedule an interview with an ARA executive regarding this transaction or for more information about ARA, nationally please contact Lisa Robinson at lrobinson@ARAusa.com, 404.990.4900 or Amy Morris at amorris@ARAusa.com, 404.990.4902; locally, Mark Leary, at mleary@ARAusa.com or 415.273.2152.
Atlanta-headquartered ARA is the largest privately held, full-service investment advisory firm in the nation that focuses exclusively on the brokerage, financing and capital sourcing of multihousing properties including conventional, affordable, distressed assets, notes sales, seniors, student & manufactured housing and multihousing land. ARA is comprised of the country’s top investment professionals who leverage a unique and fully integrated cooperative business platform of shared information, relationships and technology driven solutions. ARA’s unified enterprise approach ensures that clients are delivered the broadest asset exposure, effective matching of buyers and sellers, and the shortest transaction timeframes in the industry. The combination of resources, unparalleled market expertise and nationwide presence in the multihousing marketplace has resulted in an annual production volume of more than $10.2 billion in real estate transactions in 2013. For detailed information on ARA’s extensive multihousing investment services, visit www.arausa.com.
About Virtú Investments
Virtú Investments, LLC was built to create high-yield opportunities in the multifamily investment market. During its eighteen years of operation, Virtú has acquired $1.2B in real estate and operated more than 12,000 apartment units across 100 properties in the Western US. The firm is well positioned to generate strong risk adjusted investment opportunities in each stage of a real estate cycle. Virtú has refined an integrated and highly responsive operating platform that is unique in the industry. In-house services are composed of acquisitions, due diligence, finance, asset management, property management, efficiency retrofitting, information technology, and accounting/tax preparation. Virtú’s offices are in Larkspur, CA, Carlsbad, CA, Seattle, WA and Scottsdale, AZ.
About Acacia Capital
Acacia Capital Corporation is real estate investment manager with offices in San Mateo, CA and Phoenix, AZ. Since its formation in 1986, Acacia has managed investment funds focused on residential real estate investment strategies. Over this time, Acacia has formed 20 investment entities with aggregate investor capital commitments in excess of $2.2 billion. These funds have acquired over $5 billion of real estate investments, including more than 25,000 units in over 100 apartment communities.