Cumberland Holdings acquired the 98-unit Alpine Terrace Apartments in Sacramento, CA on December 20th, 2018. The property was renamed The Canopy Apartments. This represents Cumberland’s first California apartment acquisition in several years.
The Canopy is located in the Arden-Arcade neighborhood, a close in Sacramento neighborhood 6 miles east of downtown Sacramento. The property has a walk score of 70, is located 3 miles west of the only Whole Foods in Sacramento and in close proximity to million dollar homes. The property represents a compelling value-added opportunity to rebrand, renovate units, build out a new leasing office, upgrade the pool, improve the curb appeal, and install professional management. The in-place rents ($1,088 per month) were $150 per month below competitive properties at the time of acquisition and the property lacked a utility recovery program.
Affinity Property Management will provide third party property management services. A Walker & Dunlop bridge loan was placed on the property at closing. Cumberland’s private investors provided the equity. After stabilizing operations and completing the first phase of renovations, Canopy was refinanced with a 10 year fixed-rate term loan of $9,672,000 at a 3.67% interest rate in September 2019. The refinance took place 14 months ahead of schedule.