Trophy Multifamily Community in Sacramento, California Currently in Lease-Up with Final Completion in 2022
MINNEAPOLIS, MINNESOTA (July 13, 2021) — DeBartolo Development, LLC, and The Grupe Company announce the sale of The Eisley, a luxury rental community located in North Sacramento, to global real estate investment company Kennedy Wilson (NYSE: KW) and a partner. NorthMarq represented the Seller and procured the Buyer in this off-market transaction that closed on June 23, 2021.
The Eisley consists of two phases with 731 units, and is in a Qualified Opportunity Zone affording certain tax benefits to the new owner. This sale is for Phase 1, which contains 405 units. Phase 2, which contains an additional 326 units, is scheduled for delivery in 2023.
Once complete, residents will enjoy a state-of-the-art amenity package including a resort-style swimming pool, sun deck with poolside cabanas, heated spa, bocce ball courts and outdoor grills. The property is a mix of studio, one, two and three-bedroom apartments and townhomes featuring quartz countertops, stainless steel appliances, modern barn doors and an upgraded technology package with keyless entry and smart phone connectivity.
The property is located at the first major interchange on Business 80 and Arden Way, which is the gateway to and from the Midtown/Downtown urban core of Sacramento. It is also adjacent to the Arden Fair Mall, which provides residents immediate access to Sacramento’s premiere shopping center encompassing over one million square feet of retail.
The Sacramento apartment market has experienced tremendous growth in both rents and occupancy year. Pent-up demand, unaffordable home prices and a limited amount of new supply coming online have contributed to the strong gains. Market rent growth is approaching all-time highs, climbing over 11% over the past 12 months, while the average vacancy rate has decreased to 3.5% across the MSA.
Tampa-based DeBartolo Development and their local development partner, SKK Development, confidentially exposed the opportunity to a select group of qualified buyers. Luis Elorza and Bryan Schellinger, managing directors with NorthMarq in Tampa and Los Angeles, identified the buyers based upon their ability to fund single-asset Opportunity Zone transactions.
According to Schellinger and Elorza, “Effectuating the sale of Phase 1 of The Eisley is a testament to NorthMarq’s platform and commitment to leverage an unmatched network of trusted advisers across the country. The sellers were able to rely our collaborative culture to confidentially access highly qualified institutional investors for an off-market pre-TCO transaction.”
The sale of The Eisley represents the second successful disposition over $100 million in the past year between DeBartolo Development, LLC and SKK Development. The JV sold The Press at Midtown Quarter for $118 million in late 2020.