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STONEGATE VILLAGE APARTMENTS

Davis, California
148 Units

Property Summary

Stonegate Village is a well established Class B student-housing community located in Davis, California, home of the Davis campus of the University of California. This exciting student-housing acquisition is slightly north of Interstate 80 and just minutes (approximately 1.5 miles) from the UC Davis Campus. Stonegate’s 5.2 acres is immediately surrounded by single and multifamily homes and is in walking distance to a variety of retail. The property is comprised of 148 spacious units located in 17 two and three story buildings, a leasing office, recreation building, 2 pools and 3 on-site laundry facilities. Stonegate has the following different floorplans to offer its residents:

Unit Type Square Feet # of Units
1 Bed / 1 Bath (A) 640 22
1 Bed / 1 Bath (B) 695 36
2 Bed / 1 Bath (JR2) 844 16
2 Bed / 1.25 Bath (TH) 1040 9
2 Bed / 2 Bath (D) 1012 29
2 Bed / 2 Bath (E) 988 36
Total 126,880 148

Some of the highlights of this new investment opportunity are:

  • Purchase Price well below replacement value (We negotiated a price reduction of $900K; was $16M, now $15.1M or $102,027 per door).
  • Quarterly distributions projected to start at 4% per annum year one and continue to increase annually.
  • Projected return to investors of approximately 14% per annum with an IRR of approximately 11%.
  • Tax-sheltered quarterly cash distributions.
  • Favorable lower leverage financing (67% LTV) with Freddie Mac at a 5.68% fixed rate of interest for 10 years.
  • Value-add opportunity with current leases at approximately 23% to 25% below the 2009-2010 Davis market rents.
  • The Davis location is one of the strongest and best performing apartment markets in our portfolio with 10-year weighted average returns equal to 15% per annum.
  • Tenant mix is mostly upper classmen and graduate students therefore the property does not compete with freshman enrollment at Davis.

We have owned and operated student properties in Davis since 1996. We expect Stonegate Village to perform as well as our other 3 Davis properties have for our investors.

If you are interested in finding out more about Stonegate Village Apartments, please contact aarmes@stonesfair.com.





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