1895 San Vincente Drive

TBDBerger & Associates of NAI Northern California is please to present The Driftwood Apartments, an opportunity to acquire a well-maintained 27-unit multifamily property built in 1961, comprising 14 two-bedroom/one-bath units, 8 one-bedroom/one-bath units, and 5 studios. The property encompasses approximately 19,035 square feet on a 28,314-square-foot lot and benefits from a functional unit mix, attractive parking ratio, and a demonstrated value-add strategy. Ownership has completed significant renovations to 17 of the 27 units, establishing a proven renovation program with measurable rental premiums. Renovated units feature updated kitchens with Shaker cabinetry, solid-surface countertops, electric ranges, microwave hoods and dishwashers, as well as renovated bathrooms, LED recessed lighting, LVP flooring, and upgraded electrical subpanels with dedicated appliance circuits. Dual-pane vinyl windows further enhance unit functionality and resident comfort. The property’s PVC roof was replaced in 2019, providing additional protection against near-term capital expenditure requirements. The existing renovation program provides a defined path to additional revenue growth. Renovated units currently command average rent premiums of approximately $593 for two-bedroom units, $504 for one-bedroom units, and $468 for studios compared to non-renovated units. Additionally, the highest achieved rents exceed average in-place rents by approximately 18.5% for two-bedroom units, 16.9% for one-bedroom units, and 17.4% for studios, providing a market-supported benchmark for continued rent optimization. The ownership has implemented a utility recovery system, with gas and electricity submetered and billed directly to residents, while water and trash expenses are recovered through a RUBS program. This structure reduces ownership’s exposure to utility cost inflation and supports enhanced operating margins. Building systems include two 100-gallon water heaters with a recirculation system, wall-mounted gas furnaces and air-conditioning units, and a concrete slab foundation. Residents are provided with 27 parking spaces, including 24 open surface spaces and 3 covered spaces, as well as an on-site laundry facility consisting of two leased coin-operated washers and dryers. With a proven renovation strategy, demonstrated rental premiums, embedded rent growth, and utility expense recovery, the property offers investors an opportunity to acquire a workforce housing asset with an identifiable value-add component and multiple avenues for NOI growth.