Marcus & Millichap is pleased to present 434 B Street in Empire, CA. This low-density property is comprised of 20 individual two-bedroom/onebathroom cottages, and a triplex containing a four-bedroom/one-bathroom unit, two-bathroom/one-bedroom unit, and a one-bathroom/onebedroom unit. In total, the property features 16,845 rentable square feet on a spacious 1.85-acre lot. Most of the units feature washer/dryer hookups, private fenced backyards, and upgraded HVAC systems. 434 B Street is a great value-add opportunity as the current rents are low relative to market, granting new ownership the opportunity to immediately increase cash flow by raising rents post-closing.
The town of Empire is located in the San Joaquin Valley midway between San Francisco and Yosemite National Park, directly adjacent to Modesto, the county seat of Stanislaus County. Residents enjoy community cultural activities in Modesto as well as a wide variety of urban, coastal, and mountain recreational opportunities, all within a two-hour drive. It is a short 60-minute drive to San Ramon and 90-minutes into San Jose and San Francisco.
As rental prices continue to surge around major job centers in core Bay Area markets, working-class renters are being pushed to outlying cities. According to an analysis of census data by Apartment List, Modesto is the second highest commuter city in the nation with 7.3 percent of commuters taking at least an hour-and-a-half to get to work. Due to a high volume of local residents working in Silicon Valley, the California High Speed Rail is being constructed to provide a faster and convenient alternative to the Bay Area. The new rail will also connect the city with metropolitan areas throughout the state. The Modesto Area Express presently connects to Dublin/Pleasanton/San Ramon area, where commuters can take the Altamont Corridor Express to Tracy, Livermore, Fremont, Santa Clara and San Jose. Due to the rapid influx of commuter residents and the rapid growth of regional public transit, 434 B Street is well poised for long-term rent growth and consistent cash-flow.
***CAP RATE IS PRO FORMA
