Nov 01, 2017
By Ben van der Meer, Staff Writer, Sacramento Business Journal
Months after completing the initial construction and leasing, USA Properties Fund Inc. has sold its first market-rate multifamily project in years, The Landing at College Square.
Geoff Brown, president of the Roseville development company known best for affordable housing projects, said selling wasn’t the initial plan.
“In this particular deal, we weren’t managing the property,” Brown said. “Our typical strategy is to own and operate a community for the longer term, but for a variety of reasons, it made sense that we let it go when we did.”
USA Properties sold the 270-unit Landing at College Square, at 7640 W. Stockton Blvd. in South Sacramento, for $59 million to Oakmont Properties, based in San Rafael. That price is among the largest ever for a suburban multifamily property, with a per-unit price of about $218,500.
Brown said his company began envisioning the project about a decade ago, but didn’t start moving forward for about six years. Built in phases, the first apartments were finished last year and leasing didn’t wrap up until June. Current occupancy is at or above 98 percent, Brown said. Amenities include a community lounge, fitness center, dog-washing station and heated saltwater pool.
“It exceeded projections and was a very successful project for us,” he said.
Selling also reflects USA Properties’ belief that multifamily properties command prices now that might not be there in a year or two, he said. USA Properties still owns and manages more than 11,000 apartment units, most of them income-restricted and in California. That portfolio includes an affordable multifamily property next to The Landing at College Square, Brown said.
Marc Ross and Bill Ayres of CBRE Sacramento represented USA Properties on the sale, which closed late last month.