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Multifamily

Sierra Meadows

5340 Brace Rd, Loomis, CA 95650

Listing Price: $7,600,000

Cap Rate
4.17%
Number of Units
28
Occupancy
97.0%
Price/Unit
$271,429

Investment Overview

Marcus & Millichap is pleased to exclusively present Sierra Meadows Apartments, one of only two apartment communities in the prestigious South Placer County community of Loomis. The property offers residents a single floor plan type, a large 900 square foot two-bedroom/one-bath arrangement. The property is situated on two parcels and is accessed via Brace Road. The Town of Loomis is a highly desirable submarket of Sacramento, with one of the region's mostly highly sought-after school districts and a bourgeoning downtown that aptly claims "A small town is like a big family." According to Zillow, the “typical home value” in the 95650 zip code rose 21.4 percent in the past year, nearly topping $900,000. Sierra Meadows enjoys the distinction as the largest multifamily property in the town. Most of the apartment rental competition in the area is not only in neighboring City of Rocklin, but the product is much newer construction. Sierra Meadows enjoys the comfortable position of being the affordable alternative to residents and some may argue in the more desirable zip code. The property is enveloped on three sides by a vacant parcel of land currently owned by Costco Wholesale Corporation. Though the actual construction of a Costco store is by no means a foregone conclusion, the Rocklin Commons retail development built in 2014 and 2015 at the intersection of Sierra College Boulevard and Interstate 80 has transformed the area with very large retailers such as Walmart, Target, Bass Pro Shops along with Studio Movie Grill, Chipotle and many others filling this thriving suburban hub of commerce (see aerial map for more examples). At long last Sierra Meadows finds itself front and center in the path of progress. Current ownership self-manages the property and has kept the building in good physical condition. Most recent rents of $1,795 have been achieved, making for a 15-percent loss-to-lease collapse plus the option to introduce RUBS charges. The owner currently pays for water (on a well), sewer, and garbage. Additionally, the gap between the nearby rental competition and current market rents of $1,795 strongly suggests that with higher-level renovations to interiors on turnover there is additional upside to be captured. The new owner of Sierra Meadows will step into a stable, well-maintained operation and enjoy healthy upside and growth. Please do not disturb management or residents.

Investment Highlights

  • One-of-a-Kind Opportunity to Own 28 Units in Prestigious Loomis, California
  • Tremendous Unit Mix with Over 15-Percent Loss-to-Lease Upside
  • Positioned Adjacent to a Proposed Major Development at the Bourgeoning Intersection of Sierra College Boulevard and Interstate 80

Exclusively Listed By

Multifamily

Sierra Meadows

Listing Price: $7,600,000

Cap Rate
4.17%
Number of Units
28
Occupancy
97.0%
Price/Unit
$271,429

Investment Highlights

  • One-of-a-Kind Opportunity to Own 28 Units in Prestigious Loomis, California
  • Tremendous Unit Mix with Over 15-Percent Loss-to-Lease Upside
  • Positioned Adjacent to a Proposed Major Development at the Bourgeoning Intersection of Sierra College Boulevard and Interstate 80

Investment Overview

Marcus & Millichap is pleased to exclusively present Sierra Meadows Apartments, one of only two apartment communities in the prestigious South Placer County community of Loomis. The property offers residents a single floor plan type, a large 900 square foot two-bedroom/one-bath arrangement. The property is situated on two parcels and is accessed via Brace Road. The Town of Loomis is a highly desirable submarket of Sacramento, with one of the region's mostly highly sought-after school districts and a bourgeoning downtown that aptly claims "A small town is like a big family." According to Zillow, the “typical home value” in the 95650 zip code rose 21.4 percent in the past year, nearly topping $900,000. Sierra Meadows enjoys the distinction as the largest multifamily property in the town. Most of the apartment rental competition in the area is not only in neighboring City of Rocklin, but the product is much newer construction. Sierra Meadows enjoys the comfortable position of being the affordable alternative to residents and some may argue in the more desirable zip code. The property is enveloped on three sides by a vacant parcel of land currently owned by Costco Wholesale Corporation. Though the actual construction of a Costco store is by no means a foregone conclusion, the Rocklin Commons retail development built in 2014 and 2015 at the intersection of Sierra College Boulevard and Interstate 80 has transformed the area with very large retailers such as Walmart, Target, Bass Pro Shops along with Studio Movie Grill, Chipotle and many others filling this thriving suburban hub of commerce (see aerial map for more examples). At long last Sierra Meadows finds itself front and center in the path of progress. Current ownership self-manages the property and has kept the building in good physical condition. Most recent rents of $1,795 have been achieved, making for a 15-percent loss-to-lease collapse plus the option to introduce RUBS charges. The owner currently pays for water (on a well), sewer, and garbage. Additionally, the gap between the nearby rental competition and current market rents of $1,795 strongly suggests that with higher-level renovations to interiors on turnover there is additional upside to be captured. The new owner of Sierra Meadows will step into a stable, well-maintained operation and enjoy healthy upside and growth. Please do not disturb management or residents.

Exclusively Listed By

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