Intercontinental Real Estate Corporation (Intercontinental) in joint venture with Security Properties have acquired Broadleaf Apartments, a 244-unit Class B+ garden-style apartment community located in the Pocket neighborhood of Sacramento, Calif.
The off-market transaction represents a recapitalization of the 11-acre gated community which was originally acquired in 2019 by Security Properties, a Seattle-based multifamily development and investment firm, which will continue as operating partner in the new joint venture with Intercontinental.
For Intercontinental, whose portfolio includes 29 million square feet of commercial and industrial space and more than 12,000 multifamily units across the United States, Broadleaf represents the firm’s entry into the Sacramento market, according to Jessica Levin, Senior Director, Acquisitions with Intercontinental.
“Sacramento has been the beneficiary of renter migration from the more expensive Bay Area markets and while new, more expensive product is being delivered to the market, it is not keeping up with demand,” said Levin.
Constructed in 2006, Broadleaf’s one- and two-bedroom apartment homes are housed in 11 two- and three-story residential buildings that surround a 5,200 square-foot clubhouse and resort style pool and spa. Apartment homes range in size from 790 – 1,240 square feet and boast an above-market average unit size of 1,041 square feet. Each unit features nine-foot ceilings and dedicated in-unit laundry rooms. Common area amenities include a fitness center, game room, fireside lounge, picnic area with grill, children’s playground and community garden.
“Sacramento has been on our radar for quite some time,” added Intercontinental’s Director of Acquisitions, Allen Logue. “Broadleaf is located in the desirable infill Pocket neighborhood of Sacramento. The location’s proximity to employment nodes, transportation arterials and amenities make this investment an ideal fit for our investment strategy.”
“Sacramento continues to be a target market for us and so it was important that we keep an asset with the quality of Broadleaf in the portfolio,” said Davis Vaughn, Senior Director at Security Properties. “By partnering with Intercontinental, we were able to successfully realize gains for our existing investors, while still maintaining our footprint in a growth market.”
The property was 96 percent leased at the time of closing.