Interstate Equities Corporation has snapped up two neighboring Davis apartment complexes, Temescal and Pepperwood, for $42.8 million and says it plans to reposition the properties to serve University of California, Davis students. The deal covers 140 units and marks the buyer’s first major move into the Davis market. Tenants at both sites say rebranding and management changes started almost immediately, and some residents are already sounding the alarm.
Deal Details and the Properties
Interstate Equities purchased the two-property portfolio from Fox Group for $42.8 million, as reported by Multi-Housing News. The sale is the first ownership change for the communities since the 1980s, and Transwestern handled brokerage on the transaction.
Where They Sit and the Unit Mix
The portfolio totals 140 units, with 100 at Temescal at 2477 Sycamore Lane and 40 at Pepperwood at 2222 Sycamore Lane, and includes amenities such as pools, study rooms and bike parking, according to Connect CRE. As reported by The Business Journals, Interstate Equities says it intends to reorient the properties to better serve UC Davis students.
Tenants Report Immediate Changes
A UC Davis subreddit thread embedded above gathers residents’ accounts of abrupt management changes, new convenience fees and messaging about lease restructuring. One post said management had “officially transitioned to individual bed-by-bed leases,” a shift residents warned could allow new leases at higher market rates. Those claims remain resident reports and have not been confirmed in public filings (r/UCDavis).
Legal Note…