The Hemlock Collective
7-Unit Value-Add Multifamily Opportunity
Marketing description
Hemlock Gardens Apartments | 7-Unit Value-Add Multifamily | Sacramento, CA
Hemlock Gardens Apartments is a rare 7-unit multifamily value-add opportunity located in a desirable and stable Sacramento submarket with strong tenant demand.
The property features a highly attractive unit mix of six large 3-bedroom / 2-bathroom units (approximately 1,120 SF each) and one 2-bedroom / 1-bathroom unit (approximately 950 SF), totaling 7,789 rentable square feet on an 11,326 SF lot. Built in 1974, the asset has been well maintained by long-term ownership and is currently 100% occupied.
All tenants are on month-to-month leases, allowing a new owner to immediately reposition rents to market through natural turnover. Current rents are significantly below market, while comparable properties in the area support ~$2,500 per unit, creating a clear and executable value-add strategy.
Current NOI: $86,788 (5.42% cap rate)
Pro Forma NOI: $179,128 (11.2% cap rate)
Asking Price: $1,700,000
Estimated Pro Forma Value (ARV): ~$2,500,000
Estimated Renovation Budget: $70,000–$100,000
The property includes covered, assigned carport parking and operates efficiently with no major deferred maintenance reported. Light interior renovations during unit turnover are expected to drive substantial rent growth and long-term appreciation.
Hemlock Gardens Apartments represents an excellent opportunity for investors seeking a small-balance multifamily asset with strong cash flow upside, immediate operational flexibility, and durable demand in the Sacramento market.
Investment highlights
Rare 7-Unit Multifamily Asset in a stable, high-demand Sacramento submarket with strong rental fundamentals
Attractive Unit Mix consisting of six large 3BD/2BA units and one 2BD/1BA unit, offering above-average rent potential
100% Occupied with All Month-to-Month Leases, allowing immediate rent repositioning to market levels
Significant Value-Add Opportunity with current rents well below market and estimated market rents of ~$2,500 per unit
Strong In-Place vs. Pro Forma Spread, with current NOI of $86,788 and projected stabilized NOI of $179,128
Cap Rate Expansion Potential, improving from a 5.42% current cap to an estimated 11.2% pro forma cap
Light Renovation Strategy with estimated $70,000–$100,000 in cosmetic upgrades during unit turnover
Covered, Assigned Carport Parking, enhancing tenant appeal and retention
Well-Maintained Property with no major deferred maintenance reported and long-term self-management
Compelling Upside Valuation, with a projected pro forma value of approximately $2.5M versus a $1.6M acquisition price
Operationally Simple Asset, ideal for both local operators and out-of-state investors seeking scalable multifamily exposure
Assignment of Contract Opportunity with an immediate acquisition timeline
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