We are pleased to announce Gabhart Investments has recently closed on a 13-unit multifamily property in Fallbrook, a property with a 2-star rating.
725 Alturas Lane was sold at 10% over asking price. Gabhart Investments was able to work with both the Buyer and Seller to produce a quick transaction that yielded the highest possible benefit for both parties. The Seller was able to net almost $500K over the original expectation.
This 13 unit apartment building is a value-add opportunity teeming with potential. It is composed of 12 2 bed/2 bath units, which are incredibly spacious, and 1 detached 2 bed/2 bath unit. The property had a lot of deferred maintenance and the new owner will be spending $20K to $30K per door putting in new kitchens, bathroom, flooring and taking care of a long list of deferred maintenance items. The property is 100% occupied at the time of sale and has a lot of room to increase rents which make this property a great investment opportunity. It is projected to have over 6.50 cap rate after renovations and increasing rents.
The property is located in a quiet area just minutes away from shopping and restaurants. Fallbrook has a population of just over 50,000 but is continuing to grow due to its quaint location and proximity to the military base and surrounding areas.
Over the past four quarters, investors have been busy trading assets in North County, making it one of the more active submarkets in turnover in San Diego. The majority of trades involve 1 & 2 and 3 star stock, often with deferred maintenance.