I mentioned last week how hedge funds have been a dominant force in the Sacramento market. THR California LLC (Blackstone) in particular bought nearly 3% of Sacramento County sales on MLS since August 2012. They are buying on MLS and on the court steps, and they’ve purchased 198 properties so far over these past few months.
Where is Blackstone buying? This is good to keep in mind if you or your clients are also competing for properties in these neighborhoods. Also, there will be more rentals in these areas in coming time, which will be an important trend to watch.
The map above shows all sales purchased by Blackstone in Sacramento County since August 2012.
The map above shows all sales in the Rosemont area as well as Rancho Cordova (there was only one sale in Anatolia). There is very little activity in the Arden-Arcade area and only three sales in Carmichael and one in Fair Oaks.
Mostly all purchases in Elk Grove were under $200,000, though some were closer to $250,000 and one slightly over $300,000.
Blackstone appears to be avoiding Del Paso Heights entirely, but they are definitely buying in older Natomas (there are very few sales in newer Natomas).
Oak Park has also apparently not been a target for Blackstone so far. They are buying in Tahoe Park and throughout South Sacramento and Meadowview though.
Summary of Buying Philosophy (my opinion): Ultimately it seems the target property for Blackstone has been under $200,000 for the most part and in neighborhoods that generally have more stability. Many of the areas they are targeting are places very ripe for first-time buyers. The “move-up” more established areas like East Sacramento, Curtis Park and Land Park are being avoided completely. For further reference, THR California LLC (Blackstone) has 5 purchases in Yolo County, 7 in Placer County, 8 in San Joaquin County and 26 in Solano County (zero in El Dorado County).
UPDATE on 11/20/2012: Here is a Blackstone video shared on YouTube over the past week.
What else do you see? I’d love to hear your thoughts below.
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