Trailblazing: Juniper Apartments, Sacramento, CA
“An Exodus to the City of the Trees”
Prior to the pandemic, Sacramento was becoming a haven for migration from Bay Area residents seeking greater affordability and a slower pace of life. During the pandemic, this migration trend exploded, and Sacramento became the top metro area in the country for in-migration, aided by a 70% increase in people moving from the Bay Area. We have been fortunate to provide housing for some of these new residents at our Juniper apartment property (previously “Rosemont Park”), a 170-unit community we purchased in 2019 located ten miles east of downtown Sacramento.
The cost of living in Sacramento is 21% lower than the state’s average and 56% lower than San Francisco. The median home price in San Francisco is $1,378,000, a whopping 321% greater than Sacramento’s median price of $327,000. Median monthly two-bedroom rents in Sacramento were $1,780 in May compared with $3,600 in the San Francisco Bay Area.
This low cost of living is enjoyed in parallel with the City’s unique historical sites and culture. Sacramento is known as America’s “Farm-to-Fork” capital and is one the largest agricultural producers in the country supporting 40 farmer’s markets and a vibrant culinary scene. The region offers a variety of outdoor activities including canoeing and rafting on the American and Sacramento River and the American River Parkway, which contains several parks and over 30 miles of trails. For urban dwellers, Sac’s downtown is undergoing a renaissance with trendy eateries, boutique shops, hotels and entertainment venues.
Sacramento has also emerged as a tech hub, drawing from a talent pool fueled by the influx of the highly skilled and educated Bay Area workers, many of whom are now working remotely. Apple, Intel, Hewlett Packer and Oracle are among the well-known technology companies with a presence in Sacramento and several others (Applied Spectra, Rhombus Systems and Zennify) are expanding or relocating to the city. This economic growth is contributing to Sacramento’s employment base making it #10 in the nation for “Job Creation” (Inc. Magazine; 2020). These factors – along with a shortage of local housing – continue to propel apartment rents in Sacramento. The city experienced year-over-year rent growth of 7.3% in March – the second highest in the nation. Rents are forecast to grow 5.3% in 2021 (Yardi Matrix).
The Juniper apartments, built in 1978, is situated on a 7.4-acre parcel and includes a mix of one-, two-, three- and four-bedroom apartments averaging 790 square feet. The property features covered parking, a community garden, resident package lockers, laundry facilities, a dog park, a shaded BBQ and picnic area, and a pool and spa.
The previous owner completed extensive capital improvements during their ownership, primarily focusing on enhancements to common areas, painting the exterior and installing dual-pane windows. Since acquiring the property, we have rebranded the property with all new signage, revamped the website (liveatthejuniper.com), enhanced the landscaping and installed a new gas barbeque island and festoon lighting on the outdoor pergola. We have also upgraded the leasing office exterior and are adding new resort-style furniture and cabanas to our pool area.
We plan to modernize all 170 apartment interiors with washers and dryers. We also plan to repurpose the common area laundry rooms into additional amenity spaces including small co-working spaces, a fitness room and/or a dog wash station. To date, we have renovated 52 apartments (31%) and installed washer and dryers in ten units.
Nestled amongst tall trees in a quiet suburban neighborhood, we believe the Juniper apartments makes an ideal home for residents looking for a peaceful refuge from the hustle and bustle of the larger, nearby cities. We welcome them with open arms.
Sacramento: Did you know?
The Railyards: The nation’s largest urban infill project, which has been in planning since 2002, is currently underway in downtown Sacramento aiming to transform 244 acres into a thriving, mixed-use urban community. The site is located on the north side of downtown and once served as the western terminus of the Transcontinental Railroad. The Railyards is expected to include 12,000 housing units, 2.9 million square feet of office, 1.9 million square feet of retail, hotel and commercial uses, 41 acres of parks, a 25,000-seat major league soccer stadium, a 1.3 million square foot Kaiser Permanente medical center, a 540,000-square-foot courthouse and a state-of-the-art mass transit hub. Once completed, the project is expected to create 19,000 permanent jobs.
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