Sierra Ridge Apartments, a 136-unit property at 700 Vallejo Ave., was bought by the San Francisco-based firm for $18 million.
Managing director Trevor Wilson said Sierra Ridge, built in 2000, is a good property his firm intends to make better.
“We’ve got a renovation budget to take it from what I’d call a B-plus to an A property,” he said. “ The market is picking up in terms of rent growth and with owners upgrading their properties, and we’d expect to do something similar.”
Wilson said Sierra Ridge has the advantages of being both well maintained and managed, and had occupancy at 99 percent when the sale closed a couple weeks ago. Occupancy is now at 100 percent, he said.
The firm noted rents in the Roseville/Rocklin/Folsom region grew by 4.5 percent year-over-year, while vacancy rates are at 3.6 percent in Roseville itself.
“In general, we think your market has glowing fundamentals for acquisitions,” Wilson said, adding his firm will at least be on the lookout for more possible buys in the region. “We’re located in San Francisco, and it’s pretty hard to find compelling opportunities to buy here.”
Since 2012, Ridge has bought $250 million worth of office and multifamily properties in Northern California and is planning to invest $50 million more in such properties over the next year. Ridge Capital purchased the Roseville property with an affiliate of Andell Inc., another private investment firm.
Earlier this year, Ridge Capital Investors and an affiliate of Andell bought LeSarra, an upscale condominium project in El Dorado Hills.