The Spruce Apartments
South Lake Tahoe, CA - 12 units
$2,160,000
Acquired
(MAY 2022)
1.39x
Projected equity multiple
38.9% IRR
Projected IRR
Flite pleased to present Spruce Apartments, a 100% vacant 12-unit apartment community nestled in the resort town of South Lake Tahoe, California and half a block away from our 13 unit property, Leawood Apartments, and across the street from our most recent acquisition, the 20 unit Blackwood Apartments. Again, working closely with a local broker and partnering with Clearwater Construction, a well established local contractor, we were able to beat out 7 offers and secure the deal for $2,160,000!
The community features:
Two Studio units
Four One-Bedroom/One-Bathrooms units
Four Two-Bedroom / One-Bathrooms units
Two Two-Bedroom / Two-Bathroom single family houses
In addition to the desirable unit mix, the property features on-site ample on-site parking and onsite-laundry. The current ownership has multiple properties in the region and is looking to sell to help fund their other projects they have on their plate. During their ownership, they have vacated the entire building of tenants, installed a brand new roof, installed all new double pane windows and sliding glass doors, gutted the interiors and permitted drawings for the renovations. Our goal to pick up where the owner has left off - complete the renovations with our design touch, lease up with well-qualified residents at market rents and then explore profitable exit opportunities. The offering represents a truly rare, completely vacant, value-add opportunity in one of the countries' hottest rental markets.
Flite has partnered up with Clearwater Construction and we are experienced to take on this challenge as it provides value-add opportunities from property management and renovation perspectives. We currently own multiple multifamily properties within a half a block radius (Leawood Apartments and Blackwood Apartments) and with the addition of Spruce Apartments, we are able to take further advantage of the economies of scale in terms of renovations, overall costs and property management strategies, which will benefit all properties we hold in this market. Although short-term rentals are not allowed in this area and for this property, we are exploring possibilities of 30 day or more "seasonal" type leases to boost income potential.
