Cumberland Holdings acquired the 115-unit Chardonnay Ridge Apartment Homes in Modesto, CA on June 18th, 2019 for $16,375,000 (142,000 per unit). This represents Cumberland’s second California apartment acquisition in the past 6 months.
Chardonnay Ridge is in the Northeast Modesto submarket and is walkable to Memorial Medical Center, the largest hospital, and one of the largest employers, in Modesto. The property is directly off Coffee Road, a primary commercial corridor, with a daily traffic count of 29,000 cars. It also has convenient access to Modesto Junior College, Safeway, McHenry Village Shopping Center, Downtown Modesto, and Highway 99. The property represents a compelling value-added opportunity to build out a new leasing office, upgrade the pool and fitness center amenities, improve the curb appeal, and install professional management. The in-place rents ($1,176 per month) were $200 per month below competitive properties at the time of acquisition and the property lacked a utility recovery program.
AMC Property Management will provide third party property management services. A Fannie Mae 10-year fixed rate loan with a 4.07% interest rate was placed on the property at closing. Cumberland’s private investors provided the equity.