Fairfax Apartments
Fairfax Apartments: 2100 51st Avenue, Oakland CA 94601
Sold For: $1,275,000
Units: 18
PROPERTY LOCATION
The Fairfax Apartments is located in Oakland California, recently voted a top 5 global travel destination by the New York Times and a top 10 city for rent growth by Fortune Magazine. The subject property is situated in the Fairfax neighborhood, between Frutivale and Maxwell Park and approximately 1.5 miles east of Fruitvale Bart.
ABOUT OAKLAND
Oakland is in the midst of a paradigm shift fueled by the spill over effect from San Francisco where young affluent renters are being pushed over into the East Bay. Anchored by a five-year string of word class restaurants migrating into Oakland and stabilized by the emergence of a new high tech and micro food industry, Oakland is finally getting national recognition. Companies such as Pandora, Sungevity, Blue Bottle and Digital Realty are calling Oakland home and offering a diverse work force and an alternative to the congestion and over priced living in San Francisco.
PROPERTY DESCRIPTION
Fairfax Apartments is a stately, four-story, wood-frame, stucco building designed in a classic 1920’s Art Deco style.With unique architectural features such as a stair-stepped roof line and bold window framing, the building has a distinct San Francisco Marina appearance. Consisting of three studios and fifteen one bedrooms.
The Fairfax Apartment encompasses an expansive 14,266sq ft and has an excellent unit mix. Each exceptionally large unit has an additional walk-in powder room with built in cabinets. A 1000sq.ft. vacant basement with 15’ ceilings is surrounded by 12 individual garages, some of which are separately leased.
Owned by the same principal for over 20 years, this building hasendured multiple rental market cycles and has become an anchor forthe neighborhood. There are no other buildings of this size in theimmediate area. Current rents are 20% or more below market and the stabilized tenant base enjoy extremely large units that may be able to be converted from 1 bedroom to 2 bedroom units.
The current owner has conducted numerous repairs over the years including the renovation of 14 of the units, replacement of 60% of the windows, and a completely rebuilt boiler system. The roof is sloped tar and gravel and may need replacing within the next 5 years.
The offering affords the new owner an opportunity to acquire a stabilized Bay Area multi-family asset at under $100/sq.ft. with an attractive initial yield, and with substantial remaining upside. All this in a rapidly appreciating rental market with a 3.1% vacancy rate according to ReisReports.
Significant upside in rents, same owner for over 20 years.All tenants are paying on time, not a distressed sale. Some deferred maintenance but many units have been renovated. Neighborhood is stable and there are 12 garages and a huge undeveloped basement.
HIGHLIGHTED FEATURES
– 18 large apartments, 12 garages
– Grand scale with architectural features
– Under $100/sq.ft.
– Many renovated units
– Significant upside in rents