Cumberland Holdings acquired the 98-unit Alpine Terrace Apartments in Sacramento, CA on December 20th, 2018 for $12,050,000 (123,000 per unit). 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.