For Sale: $4,395,000
Current CAP Rate 5.30% | Proforma CAP Rate 8.73%
Assumable Financing at 3.58% until 2027
Showing Schedule:
By Appointment Only
Investment Overview
This multifamily offering presents investors with a rare opportunity to acquire a well-located asset in Salinas, California—a market characterized by exceptionally tight housing supply and robust long-term fundamentals. With current rents approximately 24.5% below market, the property offers significant upside potential through rent repositioning, management efficiency, or light value-add improvements. Salinas consistently ranks among the highest occupancy rental markets in the nation, with a decade-long average of 97.6% and a 97.5% occupancy rate as of August 2024.
There is virtually no new apartment construction in the pipeline, intensifying demand and driving sustained rent growth—7.1% year-over-year as of early 2024. Economic drivers in Salinas are strong and stable, anchored by major employers like Dole Fresh Vegetables, Salinas Valley Health, and Natividad Medical Center, as well as a growing ag-tech sector. The area also benefits from proximity to the Bay Area and its economic ecosystem, while offering a comparatively more affordable housing option for working families.
Demographics are equally favorable, with a young, growing population and strong demand from renters priced out of nearby coastal markets. This property is uniquely positioned to deliver both near-term income growth and long-term capital appreciation in one of California’s most supply-constrained and economically diverse rental markets. With immediate upside and strong fundamentals, this is a high-quality investment opportunity for buyers seeking durable cash flow and value-add potential.
Property Highlights
Assumable Financing at 3.58% until 2027
Investment Opportunity with significant upside potential - 24.5% rental upside
Exterior has undergone a significant renovation
Perennially tight housing market with limited market-rate developments in the pipeline - ONLY 82 UNITS BUILT SINCE 2020
Amenities include: on-site laundry facility, storage, on-site tuck-under parking and uncovered parking
New roofs, new exterior paint, new main electrical panels and subpanels, new siding in select areas, 10+ bathrooms have new tub/surrounds/plumbing replaced, 2 full renovations, 2 partial renovations, new water heaters
Floorplans are generously sized: (17) large 2 bed/1.5 and (1) studio
Principal, Broker
Joe Budka
D: 831-275-5322
E: joe@redwoodpropertyco.com
DRE#01913402; DRE#02166543
Principal
Alex Budka
D: 831-275-5321
E: alex@redwoodpropertyco.com
DRE#01913403
