Lesarra was acquired by Ridge for $22.8 million in partnership with Andell, Inc. The property is a newly constructed Class A multifamily property that was developed as for-sale condominiums. The property is located in one of the most desirable and sought-after locations in Sacramento and is considered to be the market leader given its very high level of finishes and overall setting. The property was acquired prior to full occupancy and the business plan consisted of accomplishing stabilization, upgrading the physical amenities and implementing a new marketing program for the asset.
Lesarra was acquired at an attractive price that compared favorably to comparable sales and replacement cost and generated strong stabilized yield (>6.5%) and an average cash-on-cash yield (after debt and amortization) of over 9%. The property was sold in 2Q2016 to a trade-investor, and yielded a deal level return (IRR) of approximately 30%.