Hotel-to-Apartments Conversion in Sacramento MSA
Vivo Investments LLC
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Targeted Hold Period:
158 Apartments Units
- Building Plans have Been Approved: The Property recently received building plan approval from Sacramento County for the change of use to residential apartments.
- Doors Open March 1st: The first phase of the Project will open its doors to new tenants on March 1st. Pre-leased rental rates are exceeding proforma.
- Well-Located to Meet Renter Demand: The Property is a 5-minute walk from the closest metro stop, which provides 20-minute access to Downtown Sacramento.
- Class A Amenities at a Competitive Price: The units are in excellent shape and the common areas were recently renovated in 2016. The Property features Class A amenities such as a pool, jacuzzi, outdoor barbecues, fitness center, coworking space, and a clubhouse.
- Investors will be Eligible to Receive Entire Preferred Return: Investors who make an investment into this project will be allocated an 8% annualized preferred return, dating back to July 2022, for no additional cost.
Jointly, the Co-Managers have acquired more than 20 projects together as part of an opportunistic strategy to acquire functionally obsolete hotels at an attractive all-in cost basis in undersupplied markets, and then convert them into competitively priced studio, one- or two-bedroom apartments. Once the Rancho Cordova conversion is complete, the Co-Managers intend to refinance or sell the Property. This is an ongoing construction project, and thus the spending, budgeting, financing, and completion percentages are changing as the project progresses. Of note, the Manager is considering strategies to provide a supplemental loan or other sources of capital to the project, in the event that additional funding is required. Review the Project’s latest quarterly report here.