November 23, 2021 9:00 AM
announces it has arranged the sale of Westlake Apartments, a 148-unit multifamily property located at 1 Shoal Court in Sacramento, California for $38 million. Demographic shifts into California’s more affordable regions continue to benefit the commercial real estate market in California’s Central Valley, particularly in the multifamily sector.
Newmark Managing Director William Blucher and Senior Managing Director Ali Nadimi brokered the sale. Graceada Partners’ sold Westlake Apartments after a significant renovation and improvement plan. The community with lakeside location in the city’s desirable Pocket neighborhood achieved post-renovation rent of $1,825 per unit versus $1,225 at acquisition.
“We’re secondary market investors at our core, and we’ve been tracking a trend that started before the pandemic but has surged since 2020,” said Joe Muratore, Principal and Co-founder of Graceada Partners. “This new sale underscores the secular shift to an outpost economy, booming in markets around the nation. Secondary markets are the star of the show for this new normal.”
During the 15-month hold period, Graceada Partners substantially upgraded the property common area, adding new lakeside barbecue areas, renovating the clubhouse and leasing office, overhauling landscaping and monument signage, adding two EV charging stations, and updating pool furniture. 36 of the 148 units were substantially renovated and recognized lease turnover rent increases up to 43%. Westlake Apartments has become one of the most desirable and well-amenitized communities in the Pocket neighborhood.
“This investment utilized many institutional strategies we employ across our portfolio, including dynamic rent pricing, asset optimization AI software, technology-enabled leasing, and adding in-demand amenities like EV charging stations.” said Ryan Swehla, Principal and Co-Founder with Graceada Partners.
“The sale of Westlake Apartments is yet another testament to the incredible strength of the Sacramento multifamily market, and more specifically the demand for well-located, value-add properties in the Sacramento region,” said Blucher. “Our marketing process generated tremendous investor interest, which ultimately led to an extremely competitive bidding environment.”
As more people have the freedom to work where they want, they are not moving to a place specifically because a job is bringing them to that region. Rather, they are making conscious decisions about where they want to live — and their work follows. This phenomenon has created a flourishing outpost economy and markets like Sacramento, Nashville, and Denver are witnessing the positive impact from it.
U.S. multifamily sales volume in 3Q21 totaled $78.7 billion, signifying the largest quarterly sales volume figure on record as investor appetite for multifamily continues to surge, according to Newmark Research.
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Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.5 billion for the trailing twelve months ending September 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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