The Ethan Apartments is a 75-unit property built in 1969 in the Arden-Arcade submarket of Sacramento. The Sacramento market is expected to add 28,000 new jobs in 2017, an increase of 2.9%. Due to minimal new apartment starts in the region, vacancy is expected to continue its decline to 2.0% in 2017, resulting in 8.0% growth in rents. Ethan Apartments has enjoyed stable, continuous ownership since 1997; it could be a prime candidate for tax credit conversion. The property has a large portion of undeveloped vacant land that could be used to add more units based on current zoning. The 75 units are situated on 3 parcels total. One unit above the garage is non-conforming.
Residents at Ethan Apartments enjoy a location in one of the most convenient suburban locations of the Sacramento region. A 10 to 15-minute drive west ends in Downtown Sacramento, to the east is Roseville and southeast is Rancho Cordova, which are the three largest employment centers in the region. Residents enjoy rare walkability in a city that depends on individual car transportation, with easy access to Arden Mall, Cal Expo and the Hornet Bus Line to CSU Sacramento.
The interiors of the Ethan are functional, clean and desirable but cosmetic finishes have fallen behind current submarket trends. Renters at neighboring properties have demonstrated a willingness to pay more for interior upgrade packages featuring plank wood flooring, refinished counter tops and new hardware, among other things. Ethan Apartments is a prime value-add opportunity for follow suit.
Representation – Buyer