8th & S 820 S St 72 Unit Apartment Building $20,000,000 ($277,778/Unit) 5.14% Cap Rate Sacramento, CA 95811

820 S Street represents a rare opportunity to acquire a newly constructed, mixed-use multifamily asset in the heart of Downtown Sacramento—California’s fastest-growing major city. Comprising 72 residential units, the project is predominantly affordable in nature, with 65 income-restricted units supported by regulatory agreements, and 7 market-rate units that offer a flexible rent structure. A vibrant ground floor retail space with a prominent rooftop seating area, leased to Tupi Coffee, activates the street frontage and adds to the project’s appeal and tenant experience.
Located at the intersection of 8th and S Streets, 820 S Street enjoys a strategic position in the urban core benefitting from walkable access to the State Capitol, Midtown and Downtown’s restaurant and arts districts, the R Street Corridor, and Sacramento’s regional transit network. The property is nestled within a transitional neighborhood experiencing significant reinvestment and is directly adjacent to some of the city’s most influential urban development projects.
The property serves a critical role in the city’s housing ecosystem, offering deeply needed affordable housing in a submarket where new, subsidized units are exceptionally scarce. As California cities face mounting pressure to address affordability and housing supply, the value of well-located affordable assets has continued to climb. 820 S Street’s affordability structure ensures long-term rent stability and demand while also offering potential operating efficiency and limited vacancy exposure.
From an economic standpoint, 820 S Street offers a compelling investment profile. The property’s unit mix and regulatory framework position it to benefit from stable cash flows and consistent demand from a growing renter base seeking proximity to jobs, services, and transit. The retail component provides an additional income stream and a synergistic amenity to residents, enhancing both financial performance and community engagement. In addition, 820 S Street offers a new owner very attractive assumable financing through Fannie Mae with approximately 9 years remaining on the loan term.
The Sacramento multifamily market has demonstrated resilience, bolstered by state and local policies promoting infill housing, high barriers to new affordable development in the central city, and increasing migration from the Bay Area. With minimal pipeline supply of new income-restricted units in the urban core, the long-term fundamentals for 820 S Street remain exceptionally strong.
Further upside potential exists through the eventual turnover of market-rate units, the value of an irreplaceable location, and the continued momentum of urban revitalization efforts that are driving demand for downtown living. Additionally, the high-quality construction, efficient unit layout, and modern design of the project reduce near-term capital expenditure requirements, positioning the asset as a stable, low-maintenance investment.
Whether as a core investment with mission-driven impact or a long-term hold in a rapidly appreciating urban submarket, 820 S Street presents a unique opportunity to own a critical piece of Sacramento’s affordable housing infrastructure—anchored by a street-level commercial tenant and surrounded by some of the most dynamic growth in the city.