Institutional Property Advisors, a relatively new division of Marcus & Millichap Real Estate Investment Services Inc., has arranged the sale of River Oaks Apartments, a 318,768-square-foot luxury apartment complex in Vacaville, Calif., for $52.4 million. The sales price works out to $167,949 each for the development’s 312 units.
Stan Jones, executive vice president of investments; Phil Saglimbeni, vice president of investments; and Sal Saglimbeni, vice president of investments; represented both the seller, GID of Boston, and the purchaser, Sequoia Equities Inc., of Walnut Creek, Calif.
Built in 2000 on 7.7 acres, the property features a mix of one-, two- and three-bedroom floor plans averaging 1,022 square feet. The two- and three-story buildings are built in a Mediterranean style, with textured stucco and pitched concrete-tile roofs. Amenities include a resort-style lap pool and spa, sports court, fitness center, children’s play structure, clubhouse, and business center.
“This is an exceptionally well-maintained high-quality property with an ideal location,” said Phil Saglimbeni. “The complex is proximate to the major metros of the East Bay and provides its residents with access to local employers and also to job centers in both directions along the Interstate 80 corridor.”
Vacaville is along I-80 roughly midway between San Francisco and Sacramento. The city is perhaps best known for two prisons that make the California Department of Corrections and Rehabilitation Vacaville’s largest employer: a medium-security state prison with about 5,000 inmates and the adjacent California Medical Facility, which houses roughly 3,000 inmates. The city’s two largest private-sector employers are biotechnology company Genentech, a subsidiary of Roche, and pharmaceutical maker Alza, which is owned by Johnson & Johnson.
A Marcus & Millichap spokesperson said that, according to RealFacts, the Vacaville apartment vacancy rate was 5.1 percent in the final quarter of 2011, unchanged from the fourth quarter of 2010.
With a portfolio of more than 11,000 apartment units and assets valued at over $1.5 billion, Sequoia is one of the largest privately held multi-family investment firms in California.
As of year-end 2011, GID’s portfolio consisted of more than 22,000 apartment units in 84 properties (under the Windsor Communities brand) located in 16 states, 4.4 million square feet of flex industrial space in 15 business parks located in eight states, and 1.2 million square feet of office space in eight buildings located in five states.
Although IPA is currently centered on multifamily, given Marcus & Millichap’s strength and history in that product type, the spokesperson said that the new division works with institutional clients on all types of properties, including retail, office, industrial, self-storage and seniors housing.
Managing director Hessam Nadji was appointed interim head of IPA last year and is leading a search for a dedicated head of business for IPA.