The 1818 Apartments
Sacramento, CA - 12 units
$2,630,000
Acquired
(sept. 2021)
1.43x
Projected equity multiple
42.7% IRR
Projected IRR
Flite is pleased to present 1818 Apartments, a 100% vacant 12-unit apartment community in the heart of the vibrant Downtown-Midtown, Sacramento neighborhood. Working closely with our Colliers International broker team, we were able to secure the deal, off-market for $2,630,000.
The 3 story multifamily complex will be delivered with all units vacant. The seller owns multiple properties in the San Francisco Bay Area and owns a business that is taking all of their time. This property is their only asset in Sacramento and has not received the attention needed, thus resulting in high vacancy and most of the units being in original condition. At an acquisition price of under $220,000 per unit and with the property being nearly all vacant, we project returns of almost 30% IRR at a compressed time frame of approximately 18 months and exit north of $3.7 million when pegged at a conservative 5.25% cap rate. The offering represents a truly rare multifamily opportunity and in one of the countries' hottest rental markets.
The community features and ideal unit mix of:
8 One-Bedroom / One-Bathrooms units (average market rents $1,650)
4 Two-Bedroom / One-Bathrooms townhome units (average market rents $2,650)
With a strong infill location, the property, located at 1818 P Street, Sacramento, is near the Sutter Medical Center, Fort Sutter Historical Park, plus it has close proximity to the California State Capitol along with the Golden 1 Sport and Entertainment Center. There are a wide range of restaurants, dining and entertainment within walking distance or a short bicycle ride away.
Flite is experienced to take on this unique challenge as we can quickly mobilize our contractor crews and start renovations in all of the vacant units immediately after close of escrow. Also, the exterior street façade has a stunning stone pattern and our team has started to develop many design ideas to accentuate this feature and really make this property "one of a kind" in this neighborhood. Our underwriting models have projected various ROI scenarios for a hold period from 1 year to 3 years to execute our strategy, accounting from a likely outcome to a more conservative approach for any market changes.
