LRG Capital Real Estate Ventures, a subsidiary of LRG Capital Group, has acquired a 36-unit apartment complex in Sonoma, California.
The deal, made through the firm’s LRG Capital Real Estate Partners I Fund, sits on three acres located at 18360 Sierra Drive. It comprises four one-story buildings and two two-story buildings.
The property was acquired for $163.95 per net rentable square foot – a price-tag “well below replacement cost,” Lawrence Goldfarb, LRG Capital founder and chief executive, said in a statement.
LRG Capital Real Estate Partners I Fund is expected to close before the end of the year, a spokesperson for the firm told PERE. The fund has a target of $33 million.
The latest deal follows on the heels of other private equity real estate investors that have been targeting the multifamily space. Last week, Philadelphia-based BPG Properties added the Post Woods apartment complex in Atlanta, Georgia to its growing multifamily portfolio. The firm paid $52.8 million for the 494-unit apartment complex. It follows on BPG’s earlier acquisition of two multifamily complexes in Connecticut, Northwoods and Chestnut Hill in North Middlesex.
London-based property investment manager, Henderson Global Investors, also acquired a 280-unit multifamily apartment block in San Francisco last month. The deal was made through its value-add real estate vehicle, CASA IV.