KP International Market owner pivoting into apartment investments with two local purchases

KP International Market owner pivoting into apartment investments with two local purchases

The owner of one of the better-known ethnic grocery stories in the region is moving into multifamily real estate.

The Oakland-based owner of KP International Market bought two Sacramento-area properties in recent weeks for $18.25 million combined.

“The buyer had cash reserves in the bank that he wanted to place in stable real estate assets for better long-term appreciation and likes multifamily to fit that bill, given their traditional high occupancy rates and rental rate growth over time,” said Race Merritt, a broker with Ethan Conrad Properties Inc. who worked on the buyer’s behalf for both sales.

Under the name 2405WAL LLC, the buyer paid $12.25 million for 66-unit The Grove, at 2405 Walnut Ave. in Carmichael. The purchase price works out to about $185,600 per unit. Separately, the same buyer bought 27-unit Peacock Garden, at 2125 Fair Oaks Blvd. in Arden-Arcade for $6 million.

Merritt said in an email that the new owner will renovate units in both properties that still need upgrades, and adjust rents accordingly. The owner is also closing escrow on a multifamily property in Concord but is otherwise done with such investments for now, Merritt said.

Tony DeLoney of The DeLoney Group with real estate brokerage Marcus & Millichap said the previous owner of The Grove bought the property three years ago and has made extensive interior and exterior improvements. Records show the seller as MJD JCRE 2404 Walnut Ave Multifamily Owner. A message left with the seller was not returned.

That entity paid $8.25 million for The Grove in 2018, records show. The newer sale was the 15th multifamily sale The DeLoney Group has closed this year, according to DeLoney.

Peacock Garden, sold for about $222,000 a unit, was sold by Swanston Properties Inc. and BKJ Holdings Inc., with a Sacramento address.

North Coast Commercial Inc.’s Tim Swanston, who was part of the seller’s side, said Peacock Garden was fully occupied at the time of sale.

“However, right before closing a vacancy was filled at $150 more than any other rent,” Swanston said in an email. “The rental market is still moving higher because of lack of vacancy as well as inflation.”

-Ben van der Meer Staff Writer Sacramento Business Journal

Redwood Property buys three Arden-Arcade apartments – Sacramento Business Journal

Investor scoops up three ArdenArcade apartment properties

New apartments are popping up across the Sacramento region, but not everywhere. And investors appear to be noticing where they’re not.

Oakland-based Redwood Property Investors LLC has bought three apartment properties in Arden-Arcade alone in recent years, two of them in the last month.

In its most recent deal, Redwood Property bought 41-unit The Wright Place at 1930 Wright St. for $5.6 million in an off-market transaction that closed last week.

Tim Swanston, a senior vice president at North Coast Commercial Inc. who brokered the sale, said a lack of supply in areas like ArdenArcade raises the interest in existing properties.

“There’s high demand because of the migration from the Bay Area,” he said. “All the new construction is in Midtown/Downtown, and other than the one by Arden Fair mall, no one is building large apartment properties in Carmichael or Arden-Arcade.” A message left with Redwood Property was not returned, nor did the seller, listed in records as Ebrahim Ibrahimzada, return a message.

Those records show Ibrahimzada paid $1.33 million for the property in 2015. At the time of sale last Thursday, Swanston said, The Wright Place was 100% leased with all tenants paying. Typically, new owners of a property will still improve units as they become vacant, then rent them out at higher rates, Swanston said. Because most apartment properties in areas like Arden Arcade are at least 30 years years old, they’re virtually affordable housing compared to a new property, he said.

In addition to Swanston, Phil McDaniel of North Coast represented the buyer in the deal, while the seller represented himself. Last month, Redwood Property paid $7.1 million for 48-unit Arden Park Apartments, at 2442 Wyda Way.

That was about 18 months after the investor bought 60-unit Apartment Lane, across from Arden Park at 2445 Wyda Way, for $8.26 million, records show.


Ben van der Meer Staff Writer Sacramento Business Journal

Downtown Sacramento apartments selling for $6.78 million

Downtown Sacramento apartments selling for $6.78 million

It’s an increasingly rare find: a Downtown Sacramento apartment
property with upside potential for a new owner.
Such a description fits 32-unit Capitol Lanai, at 1300-1320 G St., on
which a San Diego-based investor is set to close escrow Wednesday for
$6.78 million.
Joe Ramos, under the name Lanai Investments LP, is the buyer for Capitol
Lanai, a ’70s-era property with a series of two-story buildings. At the
expected sales price, the per-unit price would be about $212,000.
Ramos did not return a message seeking comment. But Tim Swanston of
North Coast Commercial Inc. said Ramos saw a way before the sale
closed to make his investment more sound.
According to Swanston, who is brokering the sale, Ramos asked the seller to keep some units vacant to make it
easier to charge a higher rent from the outset.
At close of sale, Capitol Lanai had nine open units, an unusually high number for an area in which occupancies
above 90% are common, especially for older properties.
Capitol Lanai already had exterior improvements under the previous owner, so the other added value will come
from better management practices, Swanston said.
“Especially in Downtown and Midtown, the owners have them priced where added values are already there,” he
said. Ramos has a portfolio of other Sacramento County properties and is familiar with the central city as a
market, Swanston added.
In addition to its Downtown location, Capitol Lanai has 32 parking spaces, making it more attractive than many
other apartment complexes in the neighborhood with little or no parking. Swanston said he also expects
demand for units to stay strong as the Railyards development begins to take shape to the north.
“It’s got a little bit of character,” he said. “It’s not a box by any means.”
Records on Reonomy Inc. show New Century Partners LLC, with a Sacramento address at a property
management firm, as the previous owner. A message left at the office was not returned, though an outgoing

message said the office was closed in conjunction with stay-in-place mandates to lessen the spread of COVID-

West Sac apartment/retail building near river sold for $1.4 million

West Sac apartment/retail building near river sold for $1.4 million

In a West Sacramento neighborhood that’s still emerging, a project of
apartments and retail has a new owner.
Escrow closed in mid-January for 289 Third St., a building with four
apartments and a retail space currently filled by Westside Cafe.
Tim Swanston of real estate brokerage North Coast Commercial Inc. in
Sacramento said the building sold for $1.4 million, with the owner looking
at least partially toward the future. A new bridge across the Sacramento
River to the north and a new California State Teachers’ Retirement
System building to the south are among the expected changes to the
area, known as Broderick.
“The 2007 construction and location with the Railyards coming along were very attractive to the new Buyer,”
Swanston said in an email. “It’s a long-term hold as Buyer thinks the overall area will continue to improve and
Swanston said the new owner, who he did not identify, is based in Yuba City and bought the building in a 1031
exchange to defer taxes on the sale of another property. At the time of sale, all four apartments were occupied,
while Westside Cafe, an outlet of Sacramento’s Identity Coffees, opened in the 1,990-square-foot ground-floor
retail space in 2018.
The building was sold by Riverside Properties 2 LLC, which has a Sacramento address. A message for the seller
left with the office at that address was not returned.
In addition to Swanston, Tony Whittaker of CBRE Sacramento worked on the deal.

Investor buys two apartment complexes for more than $9million

“Two property sales in the Bay Area — totaling 10 residential units — allowed an investor to purchase 85 multifamily units in the Sacramento market.

A pair of 1031 exchanges gave the unnamed buyer ownership of Orange Grove Apartments near North Highlands and Concord Plaza Apartments near Rosemont. Orange Grove is 46 units and sold for $4.775 million in September, while Concord Plaza is 39 units and sold for $4.29 million last week.

Tim Swanston, a senior vice president with North Coast Commercial Inc. in Sacramento, brokered both deals. The buyer sold a Martinez condominium, Alamo rental house and an eight-unit apartment building in Concord on the front half of the two exchange deals, he said.”

Source – 


Four multifamily sales, all off-market, total $35.5 million

After closing four multifamily property sales in off-market deals at the end of May, senior vice president Tim Swanston of North Coast Commercial Inc. said the buyer appetite for such properties hasn’t abated.

The four properties, totaling 319 units, sold for a combined $35.5 million, according to Swanston. All four sales were from different buyers and sellers, though all four buyers were based in the San Diego area and bought properties as the second part of 1031 exchanges to avoid taxes. “People look to sell smaller ones and trade into bigger ones,” Swanston said. In all four sales, Swanston said, he heard from the property owner about putting up the property for sale and made calls to those he thought would be interested. All four times, a buyer was in place before the property was listed.

“I feel like a lot of stuff trades off-market,” he said. “When you get someone willing to sell, they can find a buyer.”

According to Swanston, the four sales were: Butterfly Gardens, a 210-unit property at 9100-9190 Tuolumne Drive in Sacramento, for $19.375 million; Terrace Gardens, a 27-unit property at 2125 Fair Oaks Blvd. in Sacramento, for $3.5 million; Woodbridge Apartments, a 36-unit property at 5135 El Camino Ave. in Carmichael, for $3.6 million; and Fifth Ave. Apartments, a 46-unit property at 500 Pole Line Road in Davis, for $9.08 million.

Swanston said the new buyer of Butterfly Gardens is hoping to make some upgrades and try to capitalize on the housing market for students at nearby California State University Sacramento. “He wants to take a ‘C’ property and turn it into a ‘B-minus’ property,” he said.

Apartment on Sinkler Way in Vista sold

The eight-unit apartment at 842 Sinkler Way, Vista 92084, has been sold for $1.04 million.

The buyer was Snider Property #2, LLC, with Norman S. Snider and Kimberly M. Snider members, 12538 Poway Road, Poway 92064.

The acquisition was financed with a loan of $780,000 from Mission Federal Credit Union.

The seller of the property (assessor’s parcel 179-124-34) was Gate Hill Properties LLC, with Jennifer Jane Freck, aka Jenny Fleck, and Nicholas William Freck, aka Nick Fleck, managing members.

Terry Moore, CCIM, of ACI Apartments represented the buyer. The seller was represented by Kevin Hemstreet and Tim Swanston of South Coast Commercial Inc.

The approximately 8,118-square-foot apartment consists of two three-bedroom/two-bath units and six two-bedroom/two-bath units. All units are over 1,000 square feet.

Property in Vista sold

Dave Plutner, broker/owner of DP Properties, represented the buyer of the five-residence property reported in this column Tuesday, June 18.

The seller was represented by Timothy Swanston and Kevin Hemstreet, of South Coast Commercial.

The property consists of four apartment units and one house at 181 Pala Vista Drive in Vista. The price was $720,000 or $144,000 per unit.

The two-story apartment building was built in 1986 and consists of four two-bedroom/two-bath units. The house is three bedrooms and 2.5 baths.

The new owner is Lynwin Inc. The seller was the Aguilera Family Trust.

“This represents the sixth apartment building the buyer has purchased in Vista over the past four years,” Plutner said.

Chula Vista, El Cajon apartments in 1031

Two apartment properties, totaling 69 units in Chula Vista and El Cajon, have been swapped through a 1031 exchange valued at $8.6 million.

The first, or downleg, property was the 24-unit apartment at 1419 Tobias Drive in Chula Vista 92911 (top photo above).

That property (assessor’s parcel 623-300-31) was sold for $3.5 million by Mazin M. Kajjy and Alma A. Chaldez, co-trustees of the Kajjy Family Trust, to SEKADA LLC, with Dariush Razavi as manager, 7979 La Mesa Blvd., La Mesa 91942. The acquisition was financed with a $2.45 million loan provided by Tim Fischer, of First Republic Bank. The buyer was represented by Timothy Swanston and Brian Nelson, of South Coast Commercial. The seller was represented by Seth Watje and Sean Bascom, also of South Coast.

The second property, or upleg, was 45 units at 345-361 N. Mollison and 353-397 Dominguez Way, in El Cajon 92021, for $5.1 million. That property (assessor’s parcels 488-063-19, 21, 22, 25, 27, 30, 32 and 33) was sold to the Kajjy Family Trust by Betty T. Ma, trustee, and Shaohua H. Lu, trustee. OneUnited Bank provided a loan of $3,825,000 through Michael Proto with La Jolla Capital Group. Watje and Bascom of South Coast represented the buyer, and Bascom represented the seller.