Sacramento, CA (October 2019) — Newmark Knight Frank, one of the world’s leading commercial real estate advisory firms, is pleased to announce the recent sale of two apartment communities in the Natomas submarket of Sacramento: The Creek @ 2645 (368 units) and Natomas Park (212 units).
The Creek @ 2645 was sold to Bridge Investment Group, a privately held real estate investment firm headquartered in Sandy, Utah, for $72,000,000. The seller was a joint venture between The Bascom Group, a private equity real estate investment firm based out of Irvine, and Oaktree Capital, a global investment manager headquartered in Los Angeles, California.
Natomas Park was sold to Jackson Square Properties, a privately held real estate investment firm headquartered in San Francisco, for $37,000,000. The seller was Avanath Capital Management, a real estate investment firm that specializes in affordable and workforce housing, based out of Irvine, California.
Both properties are located in the Natomas submarket, which is situated just a few exits north of Downtown Sacramento on Interstate 5, providing residents with convenient access to major employment centers throughout the Sacramento region.
Originally built in 1986, The Creek @ 2645 consists of 47 two-story garden-style buildings spread out amongst two large parcels. Both parcels offer residents similar amenity packages, which include: a newly renovated clubhouse, entertainment center and gym, resort-style pool and spa, sports court, barbecue area, laundry facility, and maturely landscaped grounds. The property recently underwent a dramatic transformation of thoughtful interior and exterior improvements, which includes 292 renovated units.
Natomas Park was built in 2003 using Section 42 Low Income Housing Tax Credits (LIHTCs) and bond financing with the Sacramento Housing and Redevelopment Agency (SHRA). The property is a mixed-income property with approximately 44% of the 212 units being rented to residents that make 50% and 60% of Area Median Income (AMI) and the remaining 56% rented as traditional market-rate units.
Mark Leary, one of the primary listing brokers, had this to say about the properties: “Both properties benefit from their close proximity to the downtown job center. Downtown Sacramento apartment rents are on average 17.9% higher than the average rent in Natomas. Moreover, both properties are in excellent physical condition, which is a testament to the capital investments made by previous ownership, and will allow new ownership to focus future capital deployment on interior renovations.”
The Newmark Knight Frank team, led by San Francisco-based Executive Managing Director Mark Leary, Managing Director Nate Oleson, and Director Rob LeDoux, served as the exclusive advisors on the transaction. To schedule an interview with a Newmark Knight Frank executive regarding this transaction, or for more information about Newmark Knight Frank, contact Mark Leary at (415) 273-2152.
About Newmark Knight Frank
Newmark Knight Frank is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management.