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 in select units 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 its 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 (1400 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.
All tours must be scheduled through listing agents. Please do not disturb management.
