Sheldon Apartments – Elk Grove, California

Project Details

The Sheldon Road project is located in a popular southern suburb of Sacramento, California.  Elk Grove is well known for its highly desirable schools, shopping, and services as well as close / convenient commuter proximity to the downtown State Capital area, as well as other employment nodes of the Sacramento MSA.

 

The 20-acre project is being processed by the local building department to develop 324 apartment units.  The units will be 1, 2, & 3 bedroom units in a highly amentized country club type project atmosphere.  Large open areas & club house and recreational facilities are featured on a spacious 20 acre site.  Construction will be 2 story wood frame construction with garages.  BSB Design, a national architectural firm, has been contracted to provide plans and entitlement services.

 

The Sacramento area has experienced a resurgence of activity with a continued stream of Silicon Valley firms looking for less expensive facilities and housing for their employees.  With its great schools, Elk Grove is a highly sought after neighborhood and community just south of Sacramento.

 

Business Plan

 

A signature feature in all LCIP projects is execution optionality.  Sheldon when acquired was entitled to build 142 single-family homes and duplexes.  Also, the land “as-is” could be sold for a 25% project margin over cost without any development risk.  However, both LCIP and their Capital Partner believe the best execution would be a re-entitlement to build and rent apartments.  LCIP completed re-entitlement to 324 two-story garden style apartments and sold their ownership interest to it’s capital partner for a 5X profit.

 

 

 

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