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Multifamily

Fourth Street Apartments

1032 4th St, South Lake Tahoe, CA 96150

Listing Price: $2,625,000

Cap Rate
6.10%
Number of Units
14
Occupancy
98.0%
Price/Unit
$187,500

Investment Overview

Marcus & Millichap is pleased to present 1032 Fourth Ave, a beautifully renovated apartment community located in the world class destination town of South Lake Tahoe, California. The property consists of one and two bedroom floorplans and has a gross building area of approximately 7,760 square feet. 13 of the 14 units have received a full remodel over the past couple of years, providing residents truly unique living in a town that has seen very little new construction since 1980’s. Every unit has new granite countertops, new cabinetry, vinyl plank flooring / new carpet, and new appliances. In addition to the cosmetic upgrades. No expense was spared in the renovation of the property, giving the new owner a truly turnkey asset with little to none deferred maintenance. The renovation spec is meant to cater to high income professionals that work at the Barton Medical Center, which is located just a few hundred feet away from the property. Barton Medical Center remains the primary hospital and medical treatment facility for the Lake Tahoe region. Although interiors are renovated, the property has a significant value component. The most obvious value add opportunity is to submeter the electrical to each unit. The property has an electrical panel for individual meters but they are not currently connected, thus the building is master metered for both gas and electric. Sub metering electrical panels would decrease landlord utility responsibilities by approximately $12,000 annually. Additionally, the two bedroom unit floorplans are exactly double the one bedroom unit floorplans, suggesting the builder at the time combined two one-bedroom units to create two large two-bedrooms. In order to maximize income, the new owner could create four income producing units out of the footprint, instead of two. The conversion of one or both would make the building 15 / 16 units, significantly increasing value of the building and increasing income monthly. The offering represents an above market return day one and a positive leverage investment opportunity in a world renowned destination. The capitalization rate at list price is intended to indicate that the seller is very motivated. With the recent dip in interest rates, the spread between capitalization rate and interest rate is larger than the comparable’ s since the federal reserve started raising rates in early 2022. All tours must be scheduled through List Agents. Please do not disturb management or tenants.

Investment Highlights

  • Priced to Sell - Above Market / Positive Leverage Returns Day 1
  • Steps from Barton Medical Center - Lake Tahoe's Preeminent Hospital For The Region
  • All Units Recently Renovated
  • Value Add Opportunity - Opportunity to Convert Into 16 Unit Building and Submeter Electrical

Exclusively Listed By

Multifamily

Fourth Street Apartments

Listing Price: $2,625,000

Cap Rate
6.10%
Number of Units
14
Occupancy
98.0%
Price/Unit
$187,500

Investment Highlights

  • Priced to Sell - Above Market / Positive Leverage Returns Day 1
  • Steps from Barton Medical Center - Lake Tahoe's Preeminent Hospital For The Region
  • All Units Recently Renovated
  • Value Add Opportunity - Opportunity to Convert Into 16 Unit Building and Submeter Electrical

Investment Overview

Marcus & Millichap is pleased to present 1032 Fourth Ave, a beautifully renovated apartment community located in the world class destination town of South Lake Tahoe, California. The property consists of one and two bedroom floorplans and has a gross building area of approximately 7,760 square feet. 13 of the 14 units have received a full remodel over the past couple of years, providing residents truly unique living in a town that has seen very little new construction since 1980’s. Every unit has new granite countertops, new cabinetry, vinyl plank flooring / new carpet, and new appliances. In addition to the cosmetic upgrades. No expense was spared in the renovation of the property, giving the new owner a truly turnkey asset with little to none deferred maintenance. The renovation spec is meant to cater to high income professionals that work at the Barton Medical Center, which is located just a few hundred feet away from the property. Barton Medical Center remains the primary hospital and medical treatment facility for the Lake Tahoe region. Although interiors are renovated, the property has a significant value component. The most obvious value add opportunity is to submeter the electrical to each unit. The property has an electrical panel for individual meters but they are not currently connected, thus the building is master metered for both gas and electric. Sub metering electrical panels would decrease landlord utility responsibilities by approximately $12,000 annually. Additionally, the two bedroom unit floorplans are exactly double the one bedroom unit floorplans, suggesting the builder at the time combined two one-bedroom units to create two large two-bedrooms. In order to maximize income, the new owner could create four income producing units out of the footprint, instead of two. The conversion of one or both would make the building 15 / 16 units, significantly increasing value of the building and increasing income monthly. The offering represents an above market return day one and a positive leverage investment opportunity in a world renowned destination. The capitalization rate at list price is intended to indicate that the seller is very motivated. With the recent dip in interest rates, the spread between capitalization rate and interest rate is larger than the comparable’ s since the federal reserve started raising rates in early 2022. All tours must be scheduled through List Agents. Please do not disturb management or tenants.

Exclusively Listed By

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