The Shidler Group Breaks into Sacramento Market with $147.2MM Apartment Acquisition

The Shidler Group, The Core Natomas, Sacramento, Oakdale Communities, AEW Capital, Sunrise Luxury Living
Courtesy of The Core Natomas

By Meghan Hall

A national investor has entered the Sacramento submarket with the purchase of a new apartment complex. According to the Sacramento Business Journal, The Shidler Group acquired The Core Natomas for $147.2 million, or about $490,667 per unit. The deal closed at the end of February but was recorded on March 4th, according to public records, and AEW Capital and Houston-based Oakdale Communities were the sellers.

The Core Natomas complex is located at 2745 Orchard Lane, and the community includes 300 units spanning 12 different buildings and 11.7 acres. According to the property’s website, units are a mix of one-, two- and three-bedrooms ranging in size from 734 square feet to 1,396 square feet. Apartments are equipped with plank flooring, quartz countertops and modern finishes.

Community amenities are also provided and range from a library lounge and media rooms to conference rooms, fitness center, pool and outdoor pavilion. 

Overall, the community is fairly new. Construction on the property began in the spring of 2019 after Oakdale — formerly known as Sunrise Luxury Living — secured $83 million in financing to move the project forward. The community is one of several that Oakdale has sought to develop in California in recent years.

For The Shidler Group, based in Hawaii, the acquisition marks the organization’s initial foray into the Sacramento market. Founded in 1962, the real estate investment organization has made debt or equity investments in over 2,000 properties across the United States. 

The company has also been active in other high-barrier markets, including the Puget Sound. Recently, The Shidler Group purchased Phase I of the Ethos Apartments in Kent, Wash., for $113 million. In March of 2021, the company sold the Microsoft-leased Advanta Commons in Bellevue, Wash., for $169 million; the buyers were Talon Private Capital and PGIM. The Shidler Company maintained ownership of the ground lease in the deal.

Beyond commercial real estate, the organization has also founded five NYSE-listed public corporations that have issued more than $20 billion in debt and equity securities, according to its website. Many of the company’s ground leases and passive ownership of land is held for the “benefit of educational institutions” supported by The Shidler Family Foundation.

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