Clear Capital, LLC Acquires 250 – Unit Multifamily Property in Sacramento, CA
Clear Capital, LLC
HEADQUARTERS: Irvine, Los Angeles
FOUNDERS: Eric Sussman, Greg Worchell, Daniel Hardy, Paul Pellizzon
BUSINESS: Multifamily Real Estate
RECENT ACQUISITION: 250-Unit Value-Add Apartment Community in Sacramento, CA
IRVINE, CA, April 14, 2022 – Clear Capital, LLC, a West coast-based private equity real estate investment firm specializing in multi-housing investments, announces the acquisition of Solara Apartments, a 250 – unit multifamily property in Sacramento, CA. The asset is in the Arden-Arcade submarket, 1.9 miles from Clear Capital’s first investment in Sacramento, Aspire Sacramento. Solara Apartments will be re-branded “Aspire Arden” upon takeover.
Constructed in 1971, Aspire Arden is situated on 8.91 acres at 2257 Hurley Way in Sacramento, CA. The community has a desirable unit mix of one-, two-, and three-bedroom apartments, attracting a wide range of residents from various demographics. The community’s amenities include two pools with clubhouses, on-site laundry facilities, covered parking, parcel locker room, dog wash station, leasing center, and gated access offering residents a comfortable living experience. With 141 units recently renovated, Clear Capital plans to continue renovations on the remaining 109 classic units. The interior renovation scope will include a full remodel of the kitchen and bathroom including quartz countertops, new paint, stainless steel appliances, two-tone cabinet fronts, new lighting and electrical fixtures, as well as new faux wood flooring throughout the apartment homes and in-unit washer and dryer appliances. On the exterior, Clear Capital plans to upgrade landscaping, renovate the leasing office, upgrade lighting across the property, update the two pool areas and furnish the clubhouses and laundry room as well as enhance the property signage and marketing window.
“We are thrilled to have acquired this well-maintained off-market investment opportunity in Sacramento,” stated Enrique Huerta, Clear Capital’s Vice President of Acquisitions. “The firm previously made an investment in the Arden-Arcade submarket and we’re glad to have expanded in this highly coveted neighborhood which is has always been strong but continues to see unprecedented improvements in lifestyle, amenities, and overall desirability.”
This transaction represents Clear Capital’s 31st multifamily investment, the firm’s second acquisition in Sacramento, and the fifteenth in the state of California. Clear Capital’s recent purchase highlights the company’s investment strategy of purchasing value-add opportunities with strong cash flow, desirable locations, and operational upside in high barrier-to-entry markets. This investment aims at providing investors a current cash yield with a double-digit levered IRR over a 5-Year hold period.
“Clear Capital is clearly demonstrating its commitment to improving California’s housing stock and we remain bullish on Sacramento as an emerging growth market,” said Eric Sussman, a founding partner at Clear Capital. “Despite economic and legislative headwinds, California remains a highly coveted place to call home and Sacramento, being one of the most affordable housing markets with a stable yet diverse economy, is well-positioned for continued value appreciation,” added Mr. Sussman. “Our talented team’s ability to continually source off-market value-add opportunities with significant upside for our loyal investors is a testament to the reputation, track record, and strength of our platform.”
Aspire Arden is located adjacent to a major thoroughfare, and benefits from significant drive-by visibility. The community is ideally located within 2 miles of the area’s most iconic retail and dining destinations, giving residents direct access to Howe About Arden, Loehmann’s Plaza, Bell Executive Plaza, Pavilions, and the UV. With convenient access to Interstate 50, Aspire Arden is within 15 minutes of nearly 100,000 jobs in downtown Sacramento’s Central Business District. In addition, it is within a 5-minute walk to Sharif Plaza and Sacramento Central Shopping Center. The property is a 5-minute drive to Sacramento State University, 10-minute drive to CSU Sacramento, 7-minute drive to Target, Walmart, Costco and an 8-15-minute drive to over 10 parks.
Sacramento serves as the capital city of California as well as the commercial, residential, and cultural core of the Sacramento Metropolitan area. Sacramento is one of the best cities for employment in the U.S; ranking 6th when looking at salary, unemployment rate, projected cost growth and cost of living. Sacramento is ranked #3 amongst the most popular place for millennials to move in the U.S, #5 amongst U.S cities with the fastest growth in tech jobs and #1 in the world for agricultural and veterinary sciences. In addition, job growth over the next 10 years is predicted to be 34.8%, and the population is projected to grow by 54% by 2060. Sacramento was also ranked 28th fastest growing city in the country. Residents are drawn to the city for its high-quality schools, wide ranging job opportunities, local amenities, and access to regional attractions such as Lake Tahoe, Yosemite, and Napa Valley.
About Clear Capital
Clear Capital is a West Coast-based private equity real estate investment firm specializing in multi-housing real estate investments. The firm focuses on the acquisition, renovation, repositioning, and management of multifamily affordable and workforce housing assets throughout the Western, Mountain, and Southeastern regions of the United States. Clear Capital presently owns and operates a diverse portfolio of multifamily housing assets with nearly 5,000 units valued at over $1B in 6 states across the risk spectrum from Value-Add to Core. Clear Capital’s distinctive approach to investing in real assets has consistently produced above-average risk-adjusted returns for its private and institutional investors.
For more information or to make an investment, please visit clearcapllc.com. Follow us on LinkedIn and Facebook for the latest company developments.
Tania Kapoor Mirchandani
Vice President Capital Markets
[email protected] / (323) 642-9632