1895 San Vincente Drive, Concord, CA for sale

Investment Overview

Berger & 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.

Investment Highlights

• Value-Add Execution with Proven Results: Ownership has completed substantial renovations to 17 of 27 units, establishing a demonstrated value-add strategy with measurable rent premiums. Improvements include renovated kitchens and bathrooms, LED recessed lighting, LVP flooring, and upgraded electrical subpanels with dedicated appliance circuits. The roof was replaced in 2019, reducing near-term capital expenditure requirements.
• Established Rental Premiums & Embedded NOI Growth: Renovated units achieve average rent premiums of approximately $593 per month for two-bedroom units, $504 for one-bedrooms, and $468 for studios relative to non-renovated units. The remaining renovation opportunity provides a defined path to additional revenue growth, with achieved high rents currently exceeding average in-place rents by approximately 18.5% for two-bedrooms, 16.9% for one-bedrooms, and 17.4% for studios.
• Enhanced Expense Recovery & NOI Protection: Electric and gas submetering enables direct tenant reimbursement of utility consumption, while water and trash expenses are recovered through a RUBS program. The utility recovery structure reduces ownership’s exposure to rising operating expenses and supports stronger, more predictable net operating income.
• Defensive Workforce Housing Investment: The property is positioned within the workforce housing segment, benefiting from a substantial affordability advantage relative to surrounding communities and high barriers to homeownership. The segment demonstrates particularly strong demand, with submarket vacancy of approximately 3.3%, supporting stable occupancy and providing a favorable foundation for continued rent growth.
• Defined Remaining Value-Add Opportunity: With 10 units remaining to be renovated, the property offers a clearly identifiable path to additional income growth through the continuation of an already-established renovation program. Existing achieved rents provide a market-tested benchmark for the potential revenue opportunity.