Investment Overview

Davinci Apartments presents a rare opportunity to acquire a well-located, purpose-built multifamily asset in one of California’s most supply-constrained and stable rental markets. Constructed in 2005, the property consists of 43 total units with a desirable mix of 31 four-bedroom units, 4 three-bedroom units, and 8 studios—totaling 155 bedrooms. This mix is ideally suited to serve the continually growing student population of UC Davis as well as the broader Davis rental community. Strategically positioned just a five-minute bike ride from the UC Davis campus, Davinci Apartments benefits from strong year-round demand, exceptional access to transit and bike paths, and proximity to the retail, dining, and cultural amenities of downtown Davis. Davis is a highly livable, sustainability-focused city of approximately 67,000 residents, well known for its top-tier university and for having one of the most bike-friendly infrastructures in the nation. The University of California, Davis enrolls nearly 40,000 students annually, with year-over-year application growth indicating continued enrollment increases. This consistent student influx supports long-term occupancy and rental growth. The city’s current apartment vacancy rate is approximately 4.2%, a clear indication of sustained rental demand and tight market conditions. The property is currently operating at a cap rate of 5.66% with a projected pro forma cap rate approaching 7.0%, driven by opportunities to bring rents to market levels, introduce utility bill-backs, and enhance operational efficiency. With an average unit rent near $2,400 and occupancy above 98%, the asset is well-positioned for both immediate cash flow and long-term value appreciation. The new owner could also benefit from the fact that 33% of the property faces an income restriction to get a reduction on Property Taxes for the property. The restriction is at 60 and 80% of Median Income, allowing the owner to rent at virtually market rents, while still taking advantage of the property tax abetment possibilities. Davinci Apartments combines stable in-place income with clear upside potential in a supply-restricted and academically anchored market. Its prime location, modern construction, and diversified unit mix make it an ideal investment for both core-plus and value-add multifamily investors seeking durable returns in a premier university setting.