Marcus & Millichap is pleased to present Lone Oaks Apartments, an offering for a well maintained 34-unit apartment community built in 1974 with significant upside opportunities for the next owner. The property features sixteen one bed/one bath units, eight two bed/one bath units, and ten two bed/one and one half bath townhouse units. The community is nestled underneath a canopy of mature oak trees, providing residents with charming and tranquil common areas, all while being conveniently located near modern shopping options. The property is located in the Carmichael suburb east of Sacramento, boasting some of the regions highest rent-to-own affordability
gaps, desirable schools and high convenience factors to freeways, shopping, and employment.
Rent comparables in the neighborhood strongly suggest that current rents for the apartments at Lone Oak are under market in their current physical condition. The interiors of the apartments have not received major upgrades for years, translating into an additional opportunity to raise rents even more by way of interior renovations and pushing rents closer to market. Neighboring apartment communities are paving the way with vinyl plank flooring, granite countertops, new cabinet faces and lighting packages translating into premiums on rents. Whether the new owner chooses to upgrade interiors or not, the existing rent roll is below market.
The purchaser of Lone Oak Apartments will step into a value-add opportunity, will enjoy meticulously maintained landscaping, and the opportunity to continue to push rents in one the country's hottest rental markets. Industry research suggests the region will experience another eight percent increase in rents market wide over the next 12 months. The combination of robust rent growth and low vacancy coupled with a lack of new apartment construction distinguishes Lone Oak as a yield driven investment without having to buy out-of-state.
Please do not disturb management. All tours must be scheduled with listing agent.
