As Seen at GlobeSt.com

180-Unit Apartment Complex Commands $23M
By Brian K. Miller
November 05, 2008

SANTA ROSA, CA-A private investor based in Marin County has acquired the 180-unit Vineyard Gardens Apartments from a locally based private investment group for $23 million, according to Arroyo & Coates, which negotiated the sale. The complex is a 20-year-old property that includes apartments of one and two bedrooms ranging from 559 sf to 926 sf at 240 Burt St.

The Vineyard Gardens was built in 1988 and was originally called the Redwood Manor. The complex, which occupies a site of nearly nine acres, was partially renovated in 2007 and is well-located, according to the Arroyo & Coates brokers, who had the disposition assignment and also represented the buyer. Jamie Clifford and David Silver of Arroyo & Coates represented the seller, with Tim Scherer of Arroyo & Coates, representing the buyer.

The Vineyard Gardens complex attracted multiple offers from institutional as well as private bidders, according to Arroyo & Coates. The complex was 95% occupied at the time of the sale and is partially renovated. That offers the new owner potential for upside through additional renovations, according to Arroyo & Coates. In addition to the apartments the complex includes a play area, a pool, a recreation room, garage buildings and surface parking areas.

Recent market reports describe the Santa Rosa apartment market as one that features favorable long-term fundamentals, in part because of the high cost of for-sale housing in the area. In addition, barriers to entry for new development are high in Sonoma County and relatively little new competitive product is expected to be delivered soon.