1338 W 12th St in Tracy, CA is a well located apartment community which features large two-bedroom floor plans. The property is two-story building comprised of eight two-bedroom/one-bathroom units, which are approximately 750 square feet. The property sits on a 0.31 acre lot, and features private patio/balconies, wall heat and air, on-site parking, and security doors. This is a great value-add opportunity as a new owner could reposition the property and with a 21.4% Loss-to-Lease the new owner will be able increase rents closer to market.
With the recent expansion of the 580 Freeway and the connection of the ACE Train to BART, Tracy has become an extremely desirable bedroom community for employers and residents connected to the San Francisco Bay Area. The commute to the greater East Bay and downtown Oakland employment centers is only 54 miles, and thus vacancy rates in the Tracy Market have averaged nearly 96% for five years running and counting. Consequently, apartment rentals in Tracy have enjoyed double-digit rent increases year over year since the beginning of 2014, and there is continued pressure on rents from employers like Amazon, which has a 1.2 million square feet fulfillment center located in Tracy. All of these factors coupled with the lack of new rental housing construction will continue to drive rents upward into the foreseeable future.
***CAP RATE IS PRO FORMA***
***Units are currently at $1000/mo, tenants have been given notice for $1100 rents in 60 days***
