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2020 Q3 Sacramento Multifamily Market Report

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Sacramento’s apartment market continues to thrive despite the economic turmoil caused by the current pandemic. The market occupancy rate increased to 97.3 percent in the third quarter, its highest point on record. Average effective market rents jumped an impressive 3.4 percent quarter-over-quarter and 3.8 percent on an annual basis, recording the second highest annual rent growth nationwide in the third quarter. Nearly eight months into the pandemic, households are reevaluating where and how they live and work and Sacramento has seen one of the highest population growth rates nationwide during the pandemic. Strong rent growth and encouraging demand have spurred new development across the region. While concerns over renters’ economic health loom, Sacramento’s market fundamentals continue to hold firm. Sales activity picked back up during the quarter, but year-to-date volume is still well below 2019. The average sale price per unit reached a record high of nearly $240,000 this quarter  and the  2020 year-to-date average of $196,365 is also an all-time high. Quarterly demand of 1,363 units has spurred developers to break ground on more than 1,400 new units since April 2020. 

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2020 Q3 Sacramento Multifamily Market Report

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Aaron Frederick

Executive Vice President

Sacramento

As the strategic real estate partner to multifamily investors throughout the Greater Sacramento Area & Central Valley, I provide, educated market knowledge, dependable industry advice, and detailed property assessment. My role, first and foremost, is that of an advisor. The real estate transactions I facilitate are a by-product of that relationship. My clients and I have built relationships based upon their business and a deep understanding of their goals. Together, we determine where they are going with their assets by understanding where they are today. My clients are mom & pops looking for a long-term plan for retirement, partnerships, family operators wanting a secondary source of income, and REITs expanding into new markets. Every situation is unique therefore I’ve never adopted a cookie cutter assessment. Each acquisition, disposition, and exchange is more than simply trading property. My success is helping my clients create success in their business.

Whether we are facing deferred maintenance, distressed properties, neighborhood issues, or unforeseen problems in escrow, I pride myself on my ability to deal with the unknown and work through the challenge to find a resolution and overcome the unexpected.  My clients rely on my ability to look at each transaction from different perspectives and my open collaboration with the larger broker community. 

On a personal note, I am a husband, avid reader, and, in the past, provide oversight & operations to a local men’s rugby club. Sharing knowledge and mentorship is something that is very important to me. As such, I lead a personal development workshop for a group of New Generation professionals in my office. We have discussed topics such as personality types, Carnegie, and the Compound Effect.

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Ahmed Kamil

Associate

Sacramento

I work alongside Aaron Frederick and Matt Sarro who offer a combined 30 years of multi-family investments experience throughout  Sacramento County. 

Our clients are investors who are looking for a long-term plan for retirement, partnerships, family operations wanting a secondary income, and REIT’s expanding into new markets. Our clients appreciate my tenacity, enthusiasm, and my partners'  market knowledge, industry advice, and detailed property assessments. We can help with a wide range of solutions, including acquisitions and disposition sales strategies, valuation and advisory services, underwriting and due diligence, and customized marketing strategies to attract high-quality buyers. Our goal is to deliver exceptional service that will exceed our clients expectations and most importantly accelerate their success.

I leverage my customer-service oriented background and unmatched work ethic to create a memorable experience for our clients. My background in accountancy allows for a unique perspective of our clients’ day-to-day operations and business needs. If you’re looking to buy or sell or if you have any questions regarding the Northern California Multifamily Market, my partners and I would be happy to help!

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Matt Sarro

Senior Vice President

Sacramento

Multifamily investors rely on my honest and educated advice to help them make proper business decisions. It is my duty to my client to stay up to date on current rental rates, occupancies, and trends of the many submarkets in the Greater Sacramento Area. By working with both institutional and local apartment owners, I can look at any deal from different perspectives. As a native Sacramentan, I have first-hand experience of the economic cycles that have impacted our market. I am passionate about helping Sacramento become a thriving community and I believe our business owners, small and large, are at the heart of that.  

I joined Colliers International in 2014 after spending a year specializing in apartment sales around the Central Valley. After making the transition to Colliers, I decided to remain focused on multifamily properties. I now specialize in representing investors and owners within Sacramento County and Northern California. Throughout my tenure in the business I have sharpened my expertise within the Sacramento submarket and continue to remain focused on multifamily investment opportunities for my clients. Leveraging my business finance and real estate experience adds value to my clients whether I am getting a property properly marketed and sold or underwriting potential investments.

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