|Address:||1333 Arlington Boulevard, Davis, CA|
|Date Acquired:||November 2011|
Brush Creek Apartments was acquired by Ridge in 2011. The property is a Class B multifamily property that was built in 1981 and located within close proximity to University of California, Davis (UC Davis). The asset was acquired from a longtime family owner that was self-managing the property and achieving historically high occupancy levels at the expense of revenue optimization. The business plan included capital improvements to both the exterior and interior, improved on-site amenities, property management systems.
At a purchase price of $102,500 per unit, or $130/sf, the initial basis in the property was well below recent comparable sales and represented approximately 65% of replacement cost. The compelling basis and attractive yield potential generated interest from a trade buyer prior to Ridge’s scheduled close of escrow and the property was ultimately sold in escrow at a significant profit.