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Multifamily

Carson Aire

3902 Annadale Ln, Sacramento, CA 95821

Listing Price: $23,900,000

Cap Rate
4.47%
Number of Units
175
GRM
13.95
Occupancy
99.5%
Price/Unit
$136,571
Price/Gross SF
$225.92
Gross SF
105,792

Investment Overview

Marcus & Millichap is pleased to present an exclusive opportunity to purchase Carson Aire Apartments, a value-add investment opportunity in Sacramento, California that has not sold since 1993.

Built circa 1968, the property has received modest interior upgrades; most recent upgrades include granite countertops, new cabinets, LVT flooring and dual-pane windows, although most feature formica countertops, original cabinetry, sheet vinyl flooring and original windows. The grounds cover 4.84 acres complete with two swimming pools, three laundry rooms, a leasing office, assigned covered parking, controlled gated access and several large grassy spaces. Adequate space exists for the addition of a pet park, BBQ picnic areas, or other creative common area amenities.

The competitive set strongly supports enhanced revenue from more aggressive management, more targeted interior upgrades and the introduction of RUBS (currently none). Recent comps in the immediate vicinity support consistent resident demand for modest interior and exterior upgrades. Residents are attracted to the location by virtue of it's convenient access to Interstate 80 and arterial Watt Avenue, connecting residents with jobs, shopping, entertainment, groceries and services nearby. A nearby elementary school makes for a convenient walk for families with children.

Sacramento's populace grew by 100,000 over the past four years, bolstering household formation. It is anticipated that new completions (a meager 1,400 units in 2020) in areas with high rental demand will allow overall absorption of apartments to slightly outpace the metro's growing inventory. The resulting decline in unit availability will continue to push up the average effective rent, with Sacramento ranking as the top West Coast metro for rate growth in 2020.

The next owner will step into a well-located asset with very long term stable historical operations and significant revenue upside. With low borrowing rates and a continual supply constraint of multifamily housing in the region, Carson Aire Apartments is poised to perform spectacularly for years to come.

Investment Highlights

  • Below Market Rents As-Is Plus Significant Value-Add Upside Opportunity
  • Great Location within Supply-Constrained Market for High Intrinsic Value
  • 27+ Year Continuous Ownership with Stable Historical Operations and Occupancy
  • Space to Add Additional Modern Amenities Like Dog Park or BBQ Picnic Space

Exclusively Listed By

Listing Price: $23,900,000

Cap Rate
4.47%
Number of Units
175
GRM
13.95
Occupancy
99.5%
Price/Unit
$136,571
Price/Gross SF
$225.92
Gross SF
105,792

Investment Highlights

  • Below Market Rents As-Is Plus Significant Value-Add Upside Opportunity
  • Great Location within Supply-Constrained Market for High Intrinsic Value
  • 27+ Year Continuous Ownership with Stable Historical Operations and Occupancy
  • Space to Add Additional Modern Amenities Like Dog Park or BBQ Picnic Space

Investment Overview

Marcus & Millichap is pleased to present an exclusive opportunity to purchase Carson Aire Apartments, a value-add investment opportunity in Sacramento, California that has not sold since 1993.

Built circa 1968, the property has received modest interior upgrades; most recent upgrades include granite countertops, new cabinets, LVT flooring and dual-pane windows, although most feature formica countertops, original cabinetry, sheet vinyl flooring and original windows. The grounds cover 4.84 acres complete with two swimming pools, three laundry rooms, a leasing office, assigned covered parking, controlled gated access and several large grassy spaces. Adequate space exists for the addition of a pet park, BBQ picnic areas, or other creative common area amenities.

The competitive set strongly supports enhanced revenue from more aggressive management, more targeted interior upgrades and the introduction of RUBS (currently none). Recent comps in the immediate vicinity support consistent resident demand for modest interior and exterior upgrades. Residents are attracted to the location by virtue of it's convenient access to Interstate 80 and arterial Watt Avenue, connecting residents with jobs, shopping, entertainment, groceries and services nearby. A nearby elementary school makes for a convenient walk for families with children.

Sacramento's populace grew by 100,000 over the past four years, bolstering household formation. It is anticipated that new completions (a meager 1,400 units in 2020) in areas with high rental demand will allow overall absorption of apartments to slightly outpace the metro's growing inventory. The resulting decline in unit availability will continue to push up the average effective rent, with Sacramento ranking as the top West Coast metro for rate growth in 2020.

The next owner will step into a well-located asset with very long term stable historical operations and significant revenue upside. With low borrowing rates and a continual supply constraint of multifamily housing in the region, Carson Aire Apartments is poised to perform spectacularly for years to come.

Exclusively Listed By

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