Bascom San Francisco, an affiliate of Irvine, California based The Bascom Group (“Bascom”), together with funds managed by Oaktree Capital Management, L.P. (“Oaktree”), closed on a purchase of 368-unit property, Stone Creek Apartments, in Sacramento, CA. This was the third transaction in three months for the $400 million venture (“Venture II”). Stone Creek Apartments is located at 2645 Stonecreek Drive in Sacramento, CA. The sale closed on March 10, 2016. Marc Ross of CBRE represented both the buyer and the seller on the transaction. The debt financing was sourced by Troy Tegeler and Trevor Breaux of CBRE Capital Markets. CIT Bank provided financing to acquire the property.
This property was built in 1986 and has very little deferred maintenance which will allow for a highly accretive value add strategy to move upmarket with in-unit washer & dryer installation as well as modern unit interior package. The upgraded interior unit spec will compete with similar vintage products that have in-unit washer & dryer but equipped with dated appliances and carpet flooring.
The property is 10 minutes away from downtown Sacramento, which houses more than 100,000 employees and offers more than 11 million square feet of office space. With the Golden 1 Center to be delivered in October 2016, the downtown area will be the region’s premier spot for nightlife, extensive shopping, and dining attractions. Very limited supply is expected to be delivered in the Natomas area for the next three years, which fueled a 16.6% rent growth since the start of 2014. The asset is a low density site with an amenity package featuring a resort sized clubhouse, fitness center, pool deck and tennis courts.
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Calvin Ruan, Principal of Bascom San Francisco, comments, “The principals of Bascom San Francisco continue their focus on Sacramento market for new opportunities along with the Los Angeles market.” Paul Diamond, Senior Vice President-Operations, added “The acquisition of Stone Creek continues our desire to own and operate strong, infill locations in California. The Natomas area is a very desirable apartment market with strong demand and limited new construction.”