1503 Fulton

Sacramento, CA




Number Of Units


Acquisition Price


Acquisition Date

January 12, 2023

Hold Period

3 years

Project Level Projected IRR


Project Level Projected EM

Property Photos

Investment Highlights

  • Strong risk reward with a fully renovated building, fixed-rate debt with value-add returns.
  • Fixed Rate Debt in Rising Interest Rate Environment: We will be assuming the current Freddie Mac loan with a fixed rate of 4.19% and interest only to July 2024.
  • These terms would not be possible in today’s rising interest rate environment.
  • Proforma rents already proven: We feel confident in our underwritten rents as the property is already achieving our pro forma rents on 22 units and, in a few cases, outperforming the pro format.
  • Strong Fundamentals: The Arden Arcade submarket has no units under construction, a 97.3% occupancy rate, and is projected by CoStar to grow by 24% in the next four years. Additionally, South Arden is one of the better pockets of Arden Arcade with an average income within a 2-mile radius of the property $79,391. The immediate location consists of quality dining and entertainment and expensive single family, as well as recently renovated multifamily properties.
  • Strong Basis: Pricing has fallen post-rate shock by approximately 25%. Trion is under contract for $24MM ($230,769/door, $278/SF, 4.57% going-in cap rate, and 5.88% un-trended return on cost). Recent trades, primarily pre-rate shock, have gone for a lower cap rate, return on cost and significantly higher price per square foot. The discount on a cost-per-square-foot basis is roughly 40% from the comp set that is primarily non-renovated.
  • High-Quality Renovations: High-end interior finishes, quartz countertops, in-unit washer/dryers, and exterior renovations including new dual pane windows, new roofs, full patio replacement, asphalt, and concrete walkways.
  • Economies of Scale: Trion owns two properties on Fulton Avenue that have proven out the business plan at 1503 Fulton. All three properties will benefit from shared labor and scaling expenses.
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An accredited investor must meet one of the following: 1) An annual income of at least $200,000, or $300,000 when combined with spouse’s income; 2) Holds a valid Series 7, 65, or 82 license; 3) Has a net worth of >$1 million, excluding value of a primary residence.


1503 Fulton on Map