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Multifamily

Mendota Gardens Apartments

202 I St, Mendota, CA 93640

Listing Price: $3,500,000

Cap Rate
7.52%
Number of Units
60
Price/Unit
$58,333
Price/Gross SF
$78.80
Gross SF
44,418

Investment Overview

Marcus & Millichap is proud to present Mendota Gardens, a 60-unit apartment complex with multiple affordable housing components in Mendota, California. The property was built in 1980 and was renovated in 2006 through the Low-Income Housing Tax Credit program. Mendota Gardens consists of 28 one-bedroom units and 32 two-bedroom units. With some patient capital, the opportunities this asset offers are significant. Affordable Housing Components: Section 42 Program - The property had a four percent allocation and was Placed in Service in 2006. This existing Section 42 Regulatory Agreement expires in 2061. The complex is also located in a QCT designated area, so it would benefit from a basis boost in the case of a resyndication (assumes qualifying factors persist). Section 515 Program - The property originally received a USDA RD Section 515 Loan in 1979, but the loan was transferred and extended with 30-year term in 2005 and Expires in 2035. Section 515 RTO Limit of $26,815 and a Reserve Account Covenant of $33,180 per year until Required Reserve of $331,800. HUD HAP Contract- The property received a 20-Year HUD HAP Contract renewal in 2005 which Expires in Nov 2025. This is a 100 percent Project-Based Section 8 Contract. REAC scores: 2018 - 81b*, 2016 - 79c*, 2013 - 88c. For more information, please contact the listing agent.

Investment Highlights

  • Sixty-Unit Affordable Housing Apartment Complex with Strong Unit Mix - 32 Two-Bedroom and 28 One-Bedroom
  • 100 Percent PBS8 HAP Contract - Expires Nov 2025 / USDA 515 - Exp 2035 / Sec 42 LIHTC - Exp 2061
  • Great Opportunity for Patient Capital - $598K Potential Gross Income w/ 100 Percent PBS8 HAP Subsidization

Exclusively Listed By

Multifamily

Mendota Gardens Apartments

Listing Price: $3,500,000

Cap Rate
7.52%
Number of Units
60
Price/Unit
$58,333
Price/Gross SF
$78.80
Gross SF
44,418

Investment Highlights

  • Sixty-Unit Affordable Housing Apartment Complex with Strong Unit Mix - 32 Two-Bedroom and 28 One-Bedroom
  • 100 Percent PBS8 HAP Contract - Expires Nov 2025 / USDA 515 - Exp 2035 / Sec 42 LIHTC - Exp 2061
  • Great Opportunity for Patient Capital - $598K Potential Gross Income w/ 100 Percent PBS8 HAP Subsidization

Investment Overview

Marcus & Millichap is proud to present Mendota Gardens, a 60-unit apartment complex with multiple affordable housing components in Mendota, California. The property was built in 1980 and was renovated in 2006 through the Low-Income Housing Tax Credit program. Mendota Gardens consists of 28 one-bedroom units and 32 two-bedroom units. With some patient capital, the opportunities this asset offers are significant. Affordable Housing Components: Section 42 Program - The property had a four percent allocation and was Placed in Service in 2006. This existing Section 42 Regulatory Agreement expires in 2061. The complex is also located in a QCT designated area, so it would benefit from a basis boost in the case of a resyndication (assumes qualifying factors persist). Section 515 Program - The property originally received a USDA RD Section 515 Loan in 1979, but the loan was transferred and extended with 30-year term in 2005 and Expires in 2035. Section 515 RTO Limit of $26,815 and a Reserve Account Covenant of $33,180 per year until Required Reserve of $331,800. HUD HAP Contract- The property received a 20-Year HUD HAP Contract renewal in 2005 which Expires in Nov 2025. This is a 100 percent Project-Based Section 8 Contract. REAC scores: 2018 - 81b*, 2016 - 79c*, 2013 - 88c. For more information, please contact the listing agent.

Exclusively Listed By

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