Sterling Pointe, located at 2237 and 2257 Hurley Way is a Class B apartment community built in 1972 in the Arden-Arcade submarket of Sacramento. The ownership group will execute a significant renovation program that will consist of substantial improvements to unit interiors and exteriors, as well as upgrades to property amenities, branding and signage. Upon completion, Sterling Pointe will compete directly with comparable Class B+ and A- properties. This investment is the 8th apartment acquisition by Ridge in the Sacramento region since 2014, representing an investment of over $150 million.
A primary driver for Ridge’s investment is the consistently healthy Sacramento housing dynamic, which has propelled the region to a top tier rental growth market over the last five years. Much of this performance is a result of excellent job growth fundamentals coupled with very low delivery of new housing inventory this cycle. According to commercial real estate firm Marcus and Millichap, Sacramento year-over-year rental growth in 2019 exceeded 6% and the immediate neighborhoods are expected to achieve greater than the national average in 2020. Unemployment in the region has fallen to below 3.5%, led in part by private sector growth in healthcare and technology.
Ridge has engaged FPI Management, Inc. to provide third-party management services for Sterling Pointe. FPI is the 5th largest multifamily property management companies in the nation, managing more than 110,000 units in 13 states.
John Shaffer, Brian Nelson, and Nicole Parrish of Colliers International Sacramento represented Ridge on the transaction.
Ridge has acquired over $750 million of office and apartment properties in northern California since 2012 and this is Ridge and Contrarian’s 7th joint venture investment together.