(EDITOR’S NOTE: According to sources with knowledge of transaction detail, the property sold for $87.5 million, or $358,606 per unit.)
Boston (September 8, 2021) – Intercontinental Real Estate Corporation (“Intercontinental”) in joint venture with Security Properties have acquired Broadleaf Apartments, a 244-unit Class B+ garden-style apartment community located in the Pocket neighborhood of Sacramento, CA.
The off-market transaction represents a recapitalization of the 11-acre gated community which was originally acquired in 2019 by Security Properties, a Seattle-based multifamily development and investment firm, which will continue as operating partner in the new joint venture with Intercontinental.
For Intercontinental, whose portfolio includes 29 million square feet of commercial and industrial space and more than 12,000 multifamily units across the United States, Broadleaf represents the firm’s entry into the Sacramento market, according to Jessica Levin, Senior Director, Acquisitions with Intercontinental.
“Sacramento has been the beneficiary of renter migration from the more expensive Bay Area markets and while new, more expensive product is being delivered to the market, it is not keeping up with demand,” said Levin.
Constructed in 2006, Broadleaf’s one- and two-bedroom apartment homes are housed in 11 two- and three-story residential buildings that surround a 5,200 square-foot clubhouse and resort style pool and spa. Apartment homes range in size from 790 – 1,240 square feet and boast an above-market average unit size of 1,041 square feet. Each unit features nine-foot ceilings and dedicated in-unit laundry rooms. Common area amenities include a fitness center, game room, fireside lounge, picnic area with grill, children’s playground and community garden.
“Sacramento has been on our radar for quite some time,” added Intercontinental’s Director of Acquisitions, Allen Logue. “Broadleaf is located in the desirable infill Pocket neighborhood of Sacramento. The location’s proximity to employment nodes, transportation arterials and amenities make this investment an ideal fit for our investment strategy.”
“Sacramento continues to be a target market for us and so it was important that we keep an asset with the quality of Broadleaf in the portfolio,” said Davis Vaughn, Senior Director at Security Properties. “By partnering with Intercontinental, we were able to successfully realize gains for our existing investors, while still maintaining our footprint in a growth market.”
The property was 96 percent leased at the time of closing.
About Intercontinental Real Estate Corporation
Intercontinental Real Estate Corporation is an SEC Registered Investment Adviser with decades long experience in real estate investment, finance, development, construction management and asset management. Since 1959, Intercontinental and its affiliates have managed, developed, or owned collectively over $14 billion in real estate property. Today, Intercontinental manages a real estate portfolio of approximately $10 billion for its clients. The Intercontinental portfolio is diversified both by robust property mix and by geography. Fund strategies actively seek opportunities to invest in both Core and Core-Plus properties, as well as in Value-Add operating properties and development projects.
About Security Properties
Security Properties is a national real estate investment, development, and operating company headquartered in Seattle, Washington. For more than 52 years, Security Properties has provided quality housing to its residents as well as excellent financial performance for its investors. Since its founding, Security Properties has acquired or developed over 100,000 residential units at a cost of over $9.0 billion across 600+ assets. Security Properties Residential is the affiliated property management firm of Security Properties, created to increase the value of its real estate holdings by more closely managing its assets. Security Properties maintains a focused multi-family strategy supported by integrated teams of professional acquisition, development, construction, investment, and property management specialists.