Santa Rosa apartments sell for nearly $45M

Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced it has sold a Santa Rosa apartment complex for nearly $250,000 a unit, or about $44.6 million - a price the company said was influenced by Santa Rosa’s rent control ordinance.

Company representatives said the sale of the 180-unit Sonoma Ridge Apartment Community comes as the grown of the rental market continues and vacancy rates remain low.

“Santa Rosa’s multifamily market experienced 8.1 percent rent growth over the last 12 months and had maintained an average occupancy rate of approximately 96 percent as of the first quarter,” stated Stan Jones, IPA executive director. “This type of solid market support, plus strong barriers to entry from growth restrictions imposed by the City of Santa Rosa, help drive investment appeal for Sonoma Ridge Apartments.”

Jones, together with IPA executive directors Philip Saglimbeni and Salvatore Saglimbeni, represented the seller, CORE Realty Holdings Management, and procured the buyer, Bridge Partners.

“Strong rental demand presents new ownership with an exceptional value-add opportunity through the renovation of unit interiors and enhancements to common area amenities,” adds Saglimbeni. “Unit interiors have been largely untouched since a previous renovation approximately 10 years ago.”

Built in 1974 on almost 17 acres at 2900 St. Paul Drive in Santa Rosa, the property is adjacent to the Bennett Valley Golf Course and Annadel State Park. The Bennett Valley Shopping Center is one block away and the Whole Foods-anchored Mayette Village Shopping Center is 1.5 miles north.

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