Colliers International Handles $20.55 Million Transaction
Largest Multi-Family Sale in Stockton in Five Years
STOCKTON, CA – November 20, 2016 – In the largest multi-family investment transaction in Stockton in the past five years, ROEM Development Corporation has acquired Polo Run Apartments at 8165 Palisades Drive for $20.55 million, Colliers International has reported.
Spanning just over 19 acres, Polo Run encompasses 34 buildings, 25 of which are residential and nine are common area. The 320-unit property includes two studio units; 96 one-bedroom units; 30 two-bedroom, one-bath units; 160 two-bedroom, two-bath units; and 32 three-bedroom, two-bath units. Square footage ranges from 400 for the studios to 1,125 for the three-bedroom units.
Built in 1979 and renovated over the last five years, Polo Run is a beautifully landscaped community featuring two pools and spas, a fitness center, a recently-renovated clubhouse, and two park-like community BBQ areas. The property also offers four laundry rooms, along with 51 of the units having washer/ dryer hookups.
The new owner, ROEM Development of Santa Clara, is a full-service development and construction organization that specializes in market-rate and affordable housing for families and seniors. The company will convert Polo Run from a market rate property to a 100% affordable community. ROEM received low income tax credits to allow to fund a complete renovation of the interior and exterior of the units.
“Stockton, like most northern California cities, has experienced explosive rent growth over the past few years, making it less affordable to the residents that need it most,” said Mark J. Feldman, Senior Vice President based in Colliers San Francisco office. “By converting the property to 100% affordable, Polo Run will offer the residents of Stockton a newly renovated property for residents who earn 60% of the median income for San Joaquin County.”
Feldman, along with Senior Vice President Adam Lucatello and Associate Vice President Andy Hodgson from Colliers Stockton office, represented ROEM as well as the seller, Polo Run LLC, a private multi-family investor in Stockton.
“This sizable transaction is another positive step for the city of Stockton, which emerged from bankruptcy protection less than two years ago,” Feldman noted. “The city was victim to the housing downturn and overzealous municipal spending, but as economic conditions improve, deals like this show the city is recovering.”
Polo Run is located in the heart of Stockton – the Valley Oak district – known for its numerous parks and close proximity to Highway 99. Hammer Lane, bordering the southern end of the property, is a corridor in the city, connecting Highway 99 on the east to Interstate 5 to the west. Stockton is a rapidly evolving city of 300,000 people that is widely considered to be the economic, political, and social epicenter of California’s desirable Central Valley.