Marcus & Millichap, is pleased to present the opportunity to acquire 3789 E Hampton Way in Fresno, California. This property sits on a 1.5-acre lot and consists of seven single-level buildings. The community has a unit mix of 2 one-bedroom/one-bathroom units at approximately 705 sq ft, 12 two-bedroom/two-bathroom units at approximately 1,100 square ft, and 4 three-bedroom/two-bathroom units at approximately 1,420 sq ft. Tenants' amenities include on-site covered parking, security doors, and central heat and air.
3789 E Hampton Way is located 5 minutes south of CSU Fresno and has easy access to major highways including Highway 41, Highway 168, and Highway 180. The property is conveniently located within walking distance to various fine dining, shopping, and several recreational activities. In addition, the property is a short drive to elementary schools, high schools, and all three major Fresno Colleges. Fortunately, tenants are close to major employers including Fresno State University, Kaiser Permanente Hospital, Fresno Unified School District, and numerous service-oriented employers.
A major factor affecting the demand of multi-family in Fresno and throughout the state is the developers inability to keep pace with a growing populace. However, investors have benefited from the regions stock of existing apartments, compressing the overall vacancy rate by 230 basis points during the six-year period. Entering 2018, unit availability in the Valley is at its lowest level since 2000. The Fresno apartment vacancy entered 2018 at 3.9 percent, supported by job gains in each of the last two-years. In the first quarter 2018, the average effective rent in the metro was $920 per month which is a 4 percent increase from last year. As rents continue to rise in this metro coupled with tight vacancy, the next investor can continue to push rents while achieving healthy yield returns year-over-year.
***CAP RATE IS PRO FORMA***
