November 23, 2021 9:00 AM
Newmark announces that it has arranged the sale of Westlake Apartments, a 148-unit multi-family property located at 1 Shoal Court in Sacramento, Calif., for $ 38 million. Demographic shifts towards more affordable areas of California continue to benefit the commercial real estate market in the Central Valley of California, particularly in the multi-family sector.
Newmark Managing Director William Blucher and Senior Managing Director Ali Nadimi negotiated the sale. Graceada Partners sold Westlake Apartments after a major renovation and improvement plan. The lakefront community in the city’s sought-after Pocket neighborhood obtained a renovation rent of $ 1,825 per unit compared to $ 1,225 at the time of acquisition.
“We are secondary market investors at our core, and we are following a trend that started before the pandemic but has accelerated since 2020,” said Joe Muratore, director and co-founder of Graceada Partners. “This new sale underscores the age-old shift towards a booming, forward-looking economy in the country’s markets. Secondary markets are the star of this new normal.”
During the 15 month hold period, Graceada Partners significantly upgraded the property’s common space, adding new lakeside barbecue areas, renovating the lodge and rental office, redesigning the landscaping and signage of monuments, adding two charging stations for electric vehicles and updating the pool furniture. 36 of the 148 units have undergone substantial renovations and have seen rent increases on rental turnover of up to 43%. Westlake Apartments has become one of the most desirable and well-appointed communities in the Pocket district.
“This investment utilized many institutional strategies that we employ across our portfolio, including dynamic rent pricing, asset optimization AI software, technology-based leasing and the addition of equipment in high demand such as charging stations for electric vehicles. said Ryan Swehla, director and co-founder of Graceada Partners.
“The sale of Westlake Apartments is another testament to the incredible strength of the Sacramento multi-family market, and more specifically the demand for well-located, value-added properties in the Sacramento area,” said Blucher. “Our commercialization process generated tremendous interest among investors, which ultimately led to an extremely competitive bidding environment. ”
As more and more people have the freedom to work wherever they want, they are not moving precisely because a job brings them to that region. Rather, they make conscious decisions about where they want to live – and their work follows. This phenomenon has created a thriving outpost economy and markets like Sacramento, Nashville and Denver are seeing the positive impact.
Multi-family sales volume in the United States in 3Q21 totaled $ 78.7 billion, the highest quarterly sales volume on record as investor appetite for multi-family continues to grow, according to Newmark Research.
 Dba Newmark Knight Frank in California
Newmark Group, Inc. (Nasdaq: NMRK), along with its subsidiaries (“Newmark”), is a global leader in commercial real estate, seamlessly fueling every phase of the property lifecycle. Newmark’s full suite of services and products are uniquely tailored to suit every customer, from owners to occupants, investors to founders, and startups to blue chip businesses. Combining the platform’s global reach with market intelligence in established and emerging real estate markets, Newmark provides superior service to clients across the industry. Newmark generated revenues of over $ 2.5 billion for the twelve months ending September 30, 2021. The offices owned by the Newmark company, as well as its business partners, operate from more than 160 offices with approximately 6,200 professionals worldwide. To learn more, visit nmrk.com or follow @newmark.
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