Created date: November 13, 2023
Date last updated: November 13, 2023
• 57% occupied building, CAP rate is at market
• Two buildings with ample parking
• All one-bedroom apartment units
• Major value-add opportunity
• Large lot at 1.27 acres
• Pitched roof and on-site laundry
• Strong infill submarket, Arden-Arcade
• Proximity to jobs, restaurants, and entertainment
We are pleased to present The Palms apartment complex at 2421 Marconi Avenue in Sacramento. This 45-unit complex is only 57 percent occupied and is a strong value-add opportunity that consists of all one-bedroom units. It is located on a major throughfare in Arden-Arcade which is a short distance from Town & Country Shopping Center, Del Paso Country Club, Haggin Oaks Golf Course, and the Arden Fair Shopping Mall. This submarket is one of the higher employment areas of the Sacramento region and is a draw to numerous residents seeking access to jobs, restaurants, entertainment, and outdoor recreation. Business-80 is under 1-mile from the property and provides residents access to all things that make Sacramento great. Tenants can quickly traverse to Downtown-Midtown Sacramento, Golden One Center, or up into Placer County to work and play.
The Palms apartments consists of two buildings with wood frame, brick and stucco exterior on 1.27 acres. This complex was built in 1954 with a pitched roof, common area courtyard, on-site laundry, along with ample parking in the rear. Each unit features wall heat/air, gas stove and electric appliances with residents responsible for the utilities within their units.
Some of the units feature newer cabinets, counter tops, vanities and appliances while most need renovation and updating. Market rents for a remodeled unit are typically $1,450 per month and a new owner should implement a Ratio Utility Billing System (RUBS) to recapture some of the common area charges. RUBS can range between $25-75 per unit monthly depending on the number of tenants within the unit.
For the right investor, they will find there is a strong demand for renovated units in one of the most desirable submarkets in Sacramento. The work force housing requirement in Arden-Arcade, far outpaces the availability as population growth continues in this region. A well repositioned complex in this submarket will command strong rents, future growth, and long-term appreciation.