The sale of an apartment complex in Northern California overcame market challenges to earn a 2024 CoStar Impact Award, as judged by real estate professionals familiar with the market.
Redwood Tree Apartments is in Davis, California, a college town near Sacramento that has seen some 3,000 units added to the market in the last 12 months, a 20-year high. Given all the new supply, sales have been hard to come by; just two properties traded in Davis last year.
The sale of Redwood Tree was the larger of the two deals at $7.3 million, after receiving five competitive offers for a property sporting a sub-5% capitalization rate. Roberta Flanagan Realtor, a Merced, California, real estate firm, claimed the prize
The local market is heavily reliant on 35,000-student University of California, Davis. The city, like many others, struggled during the COVID-19 pandemic as universities closed their campus. It has since bounced back and the multifamily market currently has a vacancy rate of 2%.
About the sale: Roberta Flanagan Realtor bought the Redwood Tree Apartments from a locally based private individual.
What the judges said: "Given the tough market conditions, the cap rate is indeed impressive," wrote Troels Adrian, Executive Vice President of the Greater Sacramento Economic Council.
They made it happen: Alive Commercial Real Estate represented the seller as part of a team that included Spencer Moyer, managing director at Alive Commercial Real Estate, and Ty Donahue, investment associate at Alive Commercial Real Estate.
CoStar Market Manager Brian Feller contributed.