Investment Overview

Marcus & Millichap is pleased to offer for sale the Gardens at Fair Oaks Apartments, a 73-unit garden-style community strategically located in the heart of the Old Town Fair Oaks Village neighborhood about 16 miles east of the California State Capitol. The Village, as locals call it, is known for its historic charm tracing its rich history back to the mid-1800s. Popular local businesses include Fair Oaks Coffee House & Deli, the Sunflower, Fair Oaks Brew Pub and the Fair Oaks Pharmacy (claiming to be in business in that location for more than 100 years). Currently the Village Park & Fair Oaks Performing Arts Center is undergoing a massive renovation with estimated completion time in the Winter of 2024/2025. The Gardens at Fair Oaks apartment community offers residents rare suburban walkability to all that The Village has to offer. On-site, residents are also treated to a swimming pool, laundry facility and separate leasing office facing a recently updated streetside courtyard. The next owner of Fair Oaks will appreciate the desirable unit mix being over 76% two-bedroom floor plans. A rental market survey supports a thesis of 10% upside in current monthly income, equating to nearly $140,000 per year. The offering also includes attractive assumable financing. The existing note was originated in September of 2019 with a 120-month term payable in interest-only payments and a 3.38% interest rate. The balance of the loan is $8,008,000. The assumption of this note provides a buyer with deep positive leverage and approximately 5 years of remaining term, providing the new owner with ample opportunity to upgrade units and execute on a value-add strategy in a solid location. All tours must be conducted with the listing agent present. Please do not disturb management. Offers will be reviewed as they are received.