Institutional Property Advisors Closes Multifamily Portfolio for $34 Million
SACRAMENTO, Calif., Dec. 3, 2020 – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of two multifamily properties totaling 231 units in the Sacramento metropolitan area. IPA’s Salvatore Saglimbeni, Stanford Jones, Philip Saglimbeni, Alex Tartaglia, and Marcus & Millichap’s Tony DeLoney and Ken Blomsterberg, represented the seller, The Jacobson Company. The buyer, Nearon, is a privately held real estate investment company headquartered in Walnut Creek, California.
The portfolio sold for a combined $34.25 million, representing an average price per unit of approximately $148,000. The assets are Cottage Bell, a 161-unit property in the Arden Arcade neighborhood of Sacramento County that sold for $23.35 million, and Hilltop Garden, a boutique 70-unit property in Carmichael, an unincorporated suburb of Sacramento, that sold for $10.9 million.
“Cottage Bell and Hilltop Garden have been strong long-term performers in our portfolio, including high occupancy and very low delinquency during the COVID pandemic,” said Larry Jacobson, president and CEO of The Jacobson Company. “The demand for suburban living in low-density housing will further benefit new ownership.”
“The properties are well-maintained and represent an exceptional interior and common area cosmetic value-add opportunity,” noted IPA executive director Salvatore Saglimbeni. “Buyer interest was further driven by today’s favorable debt environment, offering strong cash returns.”
Located on a combined 9.65 acres, Cottage Bell and Hilltop Garden have low-density settings and beautifully landscaped grounds. The unit mix includes one-, two- and three-bedroom floorplans with an average unit size of 744 square feet. The properties are a short commute from Downtown Sacramento, California State University, Sacramento, and American River College. Nearby Interstate 80 affords residents convenient access to Midtown and Downtown Sacramento, the University of California, Davis, the San Francisco Bay Area, and the Lake Tahoe region. The Sacramento metropolitan area is home to a variety of employers in the high-tech, healthcare, education, entertainment, and government industries. Prominent employers include Intel, Apple, Hewlett-Packard, Kaiser, Centene, Franklin Templeton, Micron, and the State of California.
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About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit www.institutionalpropertyadvisors.com