Prime Arcata Multifamily Value-Add: 126-Unit Garden Apartment with 8.67% Cap Rate
1895 H St, Arcata, CA 95521Opportunity
Renovation and Modernization: The property lacks a recorded renovation year, indicating potential for value-add upgrades to units and common areas to boost rents and occupancy.
Opportunity
Operational Efficiency: Implementing cost-saving measures in utilities and maintenance could improve NOI beyond the pro forma projections.
Opportunity
Market Rent Growth: Arcata’s growing demand for housing, driven by educational and economic factors, supports potential rent increases over time.
Opportunity
Zoning Flexibility: The R-MH zoning may allow for future development or density increases, subject to local regulations.
Risk
Aging Infrastructure: Built in 1961, the property may require capital expenditures for repairs and updates, impacting short-term cash flow.
Risk
Pro Forma Assumptions: The NOI and cap rate are pro forma, meaning actual performance may vary based on occupancy, expenses, and market conditions.
Risk
Market Volatility: Economic shifts in Arcata, such as changes in university enrollment or local employment, could affect tenant demand.
Risk
Missing Data: Lack of information on parking ratio, tax rate, and renovation history introduces uncertainty in financial modeling and operational planning.
Strength
High Yield Potential: The pro forma cap rate of 8.67% is attractive compared to many multifamily markets, offering strong initial cash flow.
Strength
Prime Location in Arcata: Arcata is a vibrant city with demand drivers such as proximity to Humboldt State University, providing a steady tenant pool.
Strength
Value-Add Foundation: As a Class C property built in 1961, there is significant upside through renovations and operational improvements to increase NOI.
Strength
Functional Amenities: The property offers desirable features like balconies, patios, and walk-in closets, enhancing tenant retention and appeal.
Strength
Scalable Investment: With 126 units, the property provides economies of scale for management and potential portfolio diversification.
Property Overview
- Multifamily Building located in Arcata, CA
- Built in 1961
- Strong cap rate of 8.67%
- 87,484 SF of rentable area
Property Details
| Year Built | 1961 | Building Type | Multifamily |
| Total Size | 87,484 SF | Zoning | R-MH |
| Parking Spaces | N/A | Occupancy Rate | 0.0% |
| Cap Rate | 8.67% | Annual NOI | $99,999 |
| Price | $12,750,000 | Price/SF | $145.74 |
| Location | Arcata, CA | County | Humboldt |
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* Calculations are estimates only. Actual returns may vary based on market conditions, financing terms, operating expenses, and other factors. Consult with financial and legal professionals before making investment decisions.
Where Your NOI Goes Each Month
* Distribution based on current inputs. Actual expenses may vary.
Total Return if Sold (Exit Strategy)
* Assumes property appreciation and no sale costs. Past performance doesn't guarantee future results.
Investment Due Diligence FAQ
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Things Near
Humboldt State University
1.5 milesArcata Plaza
0.8 milesRedwood Park (Arcata Community Forest)
2.0 milesBayshore Mall
3.5 milesWildberries Marketplace
0.5 milesAbout Arcata
Located in California, Arcata is a dynamic area with strong commercial real estate fundamentals and excellent connectivity.
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