55100-55220 Airlane Dr
Yucca Valley, CA 92284
The Fairway Apartments · Multifamily Property For Sale · 36 Units

Marcus & Millichap is pleased to present the sale of The Fairway Apartments. This investment provides an opportunity for an investor to acquire 52 total apartment units for the price of 36 units. The property is comprised of multiple, adjacent four-plexes totaling 52 units located in the strong rental market of Yucca Valley, California within the greater Inland Empire area. This property features 26-1/1 units and 26-2/2 units totaling 42,250 square feet, built on a 2.02 acre lot. This investment is located adjacent to the Blue Sky County Club and a short drive to the State Route 62 and local shopping centers, providing tenants with convenient access to entertainment and restaurants. This location offers high visibility in an area known for its strong tenancy, stable rent growth and a historically high occupancy rate. The history behind the complex was that it was built in 1963, two years before the legal definition of a condominium had been established in California. The builders initially wanted to sell off the units individually but were not allowed to, so they issued long-term leases to tenants. The structure of the long-term lease provides no income from the tenant, however the tenant is responsible for all expenses incurred. This includes every possible expense that can be attributed to a building or the complex as a whole which includes property taxes, insurance, normal monthly bills like water, trash, common area electricity, and ongoing repairs such as re-paving, driveways, upcoming sewer project costs, re-roofing, painting, etc. The owners initially leased all 52 units in the mid-sixties. However, over the years, many of the long term leases have been cancelled for any number of situations would come up where people failed to adhere to the terms in their lease – mainly repaying their portion of the ongoing expenses assessed per the lease agreement (sample lease attached). Tenants have also passed, moved away, or had financial difficulty over the years. Additionally, tenants have been paid to cancel their long-term leases. Within the past few years, 17 of the leased units have been acquired back from the tenants for as low as $9,000 and as high as $36,000. Today, only 16 units remain as long-term leased units from the total 52 units. The attached Schedule A outlines the lease expiration dates for the long-term leased units.