Sep 27, 2017

USA Properties starts new apartment projects in Roseville, Folsom

By Ben van der Meer, Staff Writer, Sacramento Business Journal
Sep 27, 2017, 6:52am PDT

More than 600 new apartments are under construction in two cities by USA Properties Fund Inc. of Roseville.

Construction began in the summer for 304-unit Talavera Ridge, at Broadstone Parkway and Cavitt Drive in Folsom. Last week, work got underway for Fiddyment Ranch Apartments, 300 units at 1900 Blue Oaks Blvd. in Roseville.

USA Properties CEO Geoff Brown said both properties are market-rate and should be finished by the first quarter of 2019.

“We may try to get them done by the end of next year, if we can beat the weather,” he said. “We’ll try to phase the projects as well.”

Roseville and Folsom are among the more attractive suburbs in the region, making the prospect of new apartment units there more feasible, he said. But the locations are different, with Folsom across Broadstone from the popular Palladio retail and office development, while Fiddyment Ranch is in a new growth area of west Roseville.

Talavera Ridge is USA Properties’ third project in Folsom, but its first market-rate one. The company has expanded its plans for projects in that space recently, completing The Landing at College Square in 2015 and fully leasing it earlier this year.

Developing new multifamily projects is difficult because of construction costs, fees, entitlement hurdles and other factors, Brown said. “The flipside of that is because of all those factors, we’re not going to have an oversupply of units hitting the market,” he said.

Both Folsom and Roseville are seeing residential and job growth, ensuring a plentiful supply of renters.

Rents for Talavera Ridge will range from $1,700 to $2,400 a month for one- and two-bedroom units. Fiddyment Ranch will range from $1,625 for a one-bedroom unit to $2,250 for a three-bedroom unit, with the difference based on the relative proximity of Talavera Ridge to more amenities such as shopping and jobs.

Both projects will have rents considerably below what new units of comparable size would cost in the other big growth area for new apartments in Sacramento’s urban core, Brown said.