30 Units | Upside in Rents | Full Rent Collection |

1725 - 1817 Lucerne Ave., Dos Palos, CA

$2,400,000

Price

5.28%

Cap Rate

$126,791

NOI

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Street
Map
Overview
Cap Rate
5.28%
NOI
$126,791
Building Size
22,306 sqft
Lot Area
0.95 acres
Occupancy
100%
Units
30
Year Built
1960
Floors
2
Description

Lucerne Palm Apartments is an excellent opportunity to acquire a stabilized community with huge value-add upside in obtaining loss to market rent. Rents in the area are at least $125 or greater from the average rental per unit type at the subject property indicating a potential increase in additional gross income equal to +/-$45,000 plus potential laundry income from each building. This upside in rents is obtainable if units were to vacate without significant renovations just mainly through renter demand. Another potential strategy is to sell each building parcel consisting of less units for a higher price per unit since the community is situated on (3) separate adjoining parcels. In addition, there's an opportunity to charge the tenants for RUBS utility reimbursements.

Lucerne Palm Apartments is a total of 30 (thirty) units comprised of (5) - 1 Bed / 1 Bath units plus (25) - 2 Bed / 1 Bath units. Each building has its own laundry facility (currently not operating) plus each tenant pays for their metered electric, gas, and individual hot water heater. The owner pays for water, sewer, garbage, maintenance and repair, plus CAM electrical/gas. The total community consists of (7) seven buildings, (3) laundry facilities, with an approximate total of 22,306 SF. Two of the buildings containing (16) units are sprinklered plus a variety with dual pane vinyl clad windows. The HVAC components are all window air units along with wall furnace heating units.

Lucerne Palm Apartments consists of a total of 3 separate adjoining parcels that could be sold off in the future at a higher price per unit since each parcel contains a smaller amount of units.

1725 Lucerne: (14) units
1725 Ida St: (8) units
1817 Lucerne: (8) units

This is a rare opportunity to acquire a value-add property at scale with significant upside in rents without much required in renovations to achieve market rents.

The Lucerne Palm Apartments is located in the city of Dos Palos which is a sub-market to heavily populated Los Banos which is only 10 minutes away. This quaint agricultural based community offers residents a slightly lower cost of living compared to Los Banos and Merced while boasting its own school system, police department, along with other commercial amenities. Many of Dos Palos residents commute for work and reside in Dos Palos due to its slightly lower cost of living compared to the major cities throughout the Central Valley.

Highlights
  • 100% leased
  • Full rent collection
  • Turned units have rented $125 higher
  • Huge upside in rents + add laundry income
  • Attractive price per unit
  • Majority 2 bedroom units
Location
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