Marcus & Millichap, a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced the sale of McClellan Court Apartments, a 143-unit multifamily property in North Highlands, California. The $18.5 million sales price equates to $129,370 per unit. The cap rate is 5.25 percent. Marcus & Millichap Capital Corporation (MMCC), arranged $13,875,000 to finance the sale.
“The Sacramento metropolitan area has experienced steady population growth in recent years, fueled by its stable economy and attractiveness to Bay Area residents seeking an alternative to the high cost of living in San Francisco,” said Eduardo Vergara, first vice president investments in Marcus & Millichap’s Palo Alto office. Vergara and Louis Kwok, senior associate, represented the buyer, a private investor. “Occupancy and rents have held up well in the Sacramento region during the pandemic,” added Kwok. “Like much of the rest of California, Sacramento has a multifamily housing supply shortage and opportunities for new construction are limited.” Acquisition financing for the transaction was negotiated by David Campbell, senior vice president capital markets in MMCC’s Palo Alto office. The 30-year loan was structured with a West Coast-based financial services company at a competitive interest rate and 75 percent loan-to-value.
Built in 1960 on five acres, the 84,681-square-foot property is 15 minutes from Downtown Sacramento and within walking distance of public transportation. The community has 131 one-bedroom units, nine two-bedroom apartments, two three-bedroom units and a 150-space parking lot.
