Marcus & Millichap is pleased to present 6767 California St in Winton CA. The property sits on a large 1.9-acre parcel and is comprised of five single-story buildings with 42 one-bedroom/one-bathroom units at approximately 506 square feet each. The property has recently undergone extensive interior and exterior upgrades totaling over $1 Million including all new appliances, new energy efficient dual-pane windows, new tile flooring, new kitchen and bathroom cabinets and granite countertops, new wall heat and air units, fresh coat of paint and a gated perimeter with coded entry. New ownership can take advantage of acquiring a fully stabilized asset and raise rents to increase cash flow. With minimal upgrades and hands-on management, double digit cash-on-cash yields are readily attainable year one.
This property presents the opportunity for an investor to acquire a true value-add complex in one of the central valleys tightest rental markets. Merced county's vacancy rate has held below 4 percent for 10 consecutive quarters, and in the fourth quarter of 2018 Merced County had the lowest vacancy rate of all central valley markets at 3.1 percent. Both Class B and C rents climbed by more than 4 percent over the past year, reaching $935 and $847 per month, respectively. This trend is poised to continue for years to come in Merced County with the lack of new housing projects coming on-line coupled with the excess demand for existing work force housing.
The property is located on a quiet residential block near the central business district of Winton. Residents at 6767 California St have easy access to Highway 99, employment centers, and the Applegate Ranch Shopping Center featuring a Walmart Supercenter and Super Target, which is a short 5-minute drive away in Atwater. Additionally, the property is located 12 miles from UC Merced and a bus stop is located in front of the building for ease of transportation.
***CAP RATE IS PRO FORMA
