Cumberland Holdings announced the acquisition of Governors Square Apartments in downtown Sacramento, California on May 31, 2011.
Governors Square's location is within walking distance to the state capitol and central business district, home of 11 million square feet of office and 70,000 employees. The property is a garden style community built in 1973 with a unit mix of 32 studios, 32 one bedrooms, 32 two bedrooms and 7 three bedroom units. It is a gated community and offers secured covered parking.
The purchase price for the property was $8,450,000 which was capitalized with private equity and a Freddie Mac mortgage of $5,400,000 arranged by Johnson Capital and Prudential Mortgage Capital.
The property was renamed City Park Apartments with a comprehensive re-branding strategy focused on internet marketing. Enhancements included: new landscaping, exterior building upgrades, signage, renovation of the leasing office, and unit upgrades.
In March 2015, City Park was sold for $12.3M. City Park was a compelling Value Add opportunity in the capital's urban core. During the 4 year ownership period, Cumberland's investors received a 170% generating 18% IRR.