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Security Properties buys affordable apartments in Citrus Heights, Sacramento for $50 million

A multifamily investment company out of Seattle has scooped up two affordable housing properties locally, paying nearly $50 million combined.
According to records, Security Properties bought the Arborelle Apartments in Citrus Heights in late August for$32.3 million, and the Shenandoah Apartments near Sacramento's Pocket area in mid-September for $16.95 million.

"They've got strong fundamentals and a growth trajectory," said Jeff Garrison, Security's director of affordable housing. "And certainly there's significant demand for affordable housing."
Arborelle Apartments, at 8007 Sunrise Blvd., has 179 units in two-story buildings, making the purchase price about $180,400 a unit. Shenandoah, at 6205 Riverside Blvd., has 100 units in two-story buildings, for a per-unit price of $169,500. Garrison said Security is planning what he called a pretty robust capital improvements package for both properties, partly aimed at improving energy efficiency.
Security Properties recently received a "green" loan toward that end, with the goal to make both properties save 15% on both energy and water costs, he said. Arborelle was built in 1985, while Shenandoah was built in 1968.

Security Properties will also roll out a resident services program, including components such as continuing education and classes for people learning English as a second language. At Shenandoah, Security will also start an after-school program, Garrison said. 

Records indicate The Ezralow Co., based in Calabasas, was the seller for both properties. The company did not return an email seeking comment on the sales this week.
Both properties are fully occupied, Garrison said. Because of their affordable designations, monthly rents at both properties are $400 to $500 less than the same rate for a comparable market-rate unit, he said.

"There's much more demand than supply, and there will be for years to come," Garrison said, even with many more new projects being able to garner state funding in the last few years.
Shenandoah's apartments range from one to three bedrooms, and 650 to 1,000 square feet. Arborelle Apartments are one and two bedrooms, and range from 705 to 915 square feet.

Both properties have a pool, playground and picnic areas.