April 29, 2013
San Francisco, CA – Ridge Capital Investors, LLC and Redwood Real Estate Partners have acquired Saratoga Downs Apartments, a 124-unit apartment community, and Sheveland Ranch Townhomes, a 54-unit townhome development, both just south of downtown Napa, California for a combined price of $39.5 million. The contiguous Class A properties were developed in 2006 and 2012, respectively. The combination of the properties, for a total of 178 units, creates an institutional sized asset that represents the newest apartment product in the Napa market. The combined property has been rebranded as Saratoga Downs at Sheveland Ranch.
Over the first year of its ownership, the company plans to bring the property’s physical quality and overall tenant experience to the top of the market via a substantial augmentation to the existing clubhouse, amenities and interior unit finishes. FPI Management, Inc. will manage the property on behalf of the owner.
“Saratoga Downs at Sheveland Ranch offers the most diverse range of unit types and sizes in the market, and is the only property to offer new townhomes up to four bedrooms in size in a neighborhood environment”, commented Trevor Wilson, managing director of Ridge Capital Investors, LLC. “Upon completion of our repositioning program, Saratoga Downs will offer the highest quality rental living experience in the Napa Valley, a market that has shown resilience in downturns and a healthy bounce back over the last 24 months”, added Mr. Wilson. The Napa market currently stands at 96% occupancy with rental increases in excess of 15% over the past two years.
This is the fifth investment for Ridge Capital Investors in the last twelve months, and its third with Redwood. Over the next twelve months, the company plans to invest $50 million of equity in both multifamily and commercial properties in the Bay Area.
Vince Schwab of Marcus & Millichap’s San Francisco Office exclusively represented the Seller and the Buyers. Originally marketing just the 54-unit Townhomes, Mr. Schwab was able to assemble the adjacent 124 Units for Purchase.
About Ridge Capital Investors
Ridge Capital Investors, LLC, a real estate investment and operating firm located in San Francisco, CA, invests in multi-family and commercial properties throughout the Bay Area and the Pacific Northwest. Founded by Trevor Wilson and principals Brian Printz, Scott Kotarba and Thomas Daniel, the company focuses on opportunities where it can create significant value by capitalizing on the investment team’s collective experience in over $2 billion of real estate investment and development over the past 19 years.
About Redwood Real Estate Partners
Headquartered in Rancho Santa Margarita, California, Redwood Real Estate Partners is a privately-owned entrepreneurial real estate investment and asset management company founded by Carl Chang and the Chang Family. Redwood Real Estate Partners capital investment comes directly out of the $250 million Redwood-Kairos Real Estate Fund III which is a co-mingled private equity fund comprised of high net worth individuals, endowments and The Chang Family.
About Marcus & Millichap
With more than 1,000 investment professionals in offices nationwide, Marcus & Millichap Real Estate Investment Services is the largest firm specializing in commercial real estate investment services in the nation. Marcus & Millichap closed 6,149 transactions in 2012, the highest of any commercial real estate brokerage firm. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology and relationships with the largest pool of qualified investors nationally.