Big Investors Move Into Sonoma County
October 24th, 2009 categories: Buyer Resource, Petaluma, Seller Resource
Here come the Big Boys. Here comes the Smart Money. Here comes the East Coast Money. What does this mean for us? East Coast Money…Does it really matter where the money is from…after all, it is a sale right? It is a sale, and I think there is much more to it than that. I think it means GREAT things, let me explain!
For months now I have been talking about the Cash Flow opportunities here in Sonoma County. Big Cash Flow opportunities, high Cap Rates, and a great time to buy, not just a primary residence, but also an Investment Property or two. And now…outside of some small examples, some investors are putting BIG MONEY where their mouths are.
Lakeville Resort Apartment Complex - Petaluma California - Recently Sold For $52 Million To New York Based Investment Group Abacus Financial
The Lakeville Resort Apartment Complex in Petaluma California recently sold to New York Based Investment Group, Abacus Financial Group, paid $52 Million for the 492 unit apartment complex. This brings their portfolio to 23,000 apartment units across the country, implying the group knows what they are doing.
A September 20th, 2009 RealFacts survey showed that fundamentals are relatively strong for Sonoma County. Occupancy was 94.5% for apartments in Sonoma County, up from 93.4% the previous quarter. Further, the average apartment rented for $1,179 for the quarter, as opposed to $1,176 the previous quarter, a ever so slight increase. Rents from the previous year were $1,205 for an average apartment, showing only a 2.2% drop…very strong relative to national levels.
So what does this mean, and why is this good for me and you? I believe that it means the Sonoma County Real Estate market is near or at the bottom, our market has good fundamentals (rental rates, occupancy, and more importantly future outlook), and of all the opportunities nationwide, Sonoma County is being looked at, and in many cases, chosen by the “Smart Money.” Remember, this is an investment firm from New York who bought in Petaluma…and there is a lot of Real Estate between Sonoma County and New York from which to choose. Not only are there a lot of choices, there is also a lot of easier selections for a New York based firm…Boca Raton, FL is Manhattan south from January to May, as many Northeasterners vacation there…not to mention the rest of Palm Beach County, and further south to Miami. To look at investments nationwide and to have Sonoma County chosen means good things for us, as they likely had to overcome some emotional attachment to other areas as well.
So when we see little clues like this, we want to make sure we pass it along, as we think it means big opportunities for investment minded buyers. Just yesterday we were talking about a certain Florida based buyer with millions of dollars on the sidelines waiting for the right opportunity, and he was hesitant for a couple of reasons. This may be just the type of news he needs to hear to realize the numbers work, and cash flow is cash flow, and even if prices drop a little from here, he is well protected because of the cash flow.
On a side note, there are investment opportunities to cash flow for most price ranges…starting in the low $300,000’s currently, and we are happy to discuss these opportunities with all prospective buyers. These opportunities are not just here in Sonoma County, but also in Marin County, Lake County, Solano County, Mendocino County, Napa County, and beyond.
If you have any questions regarding Sonoma County Investment Property, please feel free to contact here, or at WineCountryMoves.com. We look forward to finding Cash Flow opportunities for you.
