Marcus & Millichap has a deal for a larger investor that makes a lot of sense.
Mountain View Cottages is a well maintained and well located property in the center of Indio, California.
Location is a plus. Highway 111 is the major artery through the Coachella Valley, and features constant bus transportation less than 300 yards from the complex. The Indio High School is a little more than a half-mile away. There's major shopping about .3 miles away.
The other plus is the general apartment market in Coachella Valley. There is almost no building of new apartment product, and vacancy rates are about two percent. Even if there is new building, it will be of A and B quality apartments, not the working-class units most needed. In fact, Mountain View Cottages are unique in their sector of the market.
Rents in Indio are increasing sharply with the business recovery.
Vacancy rates are dropping sharply:
The property makes sense for an investor, offering a cap rate of 6.5%. Interest rates in the industry are low, by historic standards, and a buyer would enjoy "positive leverage", meaning that they make more money on the investment than the loan charges them for interest. This is not common in today's Southern California apartment market.
For more information, call me at 760 318 2876, or email me at Bruce.Haulley@marcusmillichap.com.
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