3411 & 3505 Spring Street

Description

The Spring Street Portfolio is a rare opportunity to acquire two adjacent multifamily properties totaling 24 units in the heart of Paso Robles, offered at $5,000,000 — approximately $263/SF for 3411 Spring Street and $380/SF for 3505 Spring Street — with a combined stabilized cap rate of 7.17% and annual rent upside of approximately $155,400 across both properties. The portfolio consists of 3411 Spring Street, a 14-unit two-story walk-up built in 1970 spanning approximately 11,748 rentable square feet, and 3505 Spring Street, a 10-unit two-story property originally constructed as a motel and thoughtfully converted to residential use, spanning approximately 5,000 rentable square feet. Together, the properties sit on adjacent lots totaling over ±0.79 acres along the Spring Street corridor, zoned PR/R4 and T-4NC respectively. Both properties are managed by MPM Inc., offering a seamless transition for new ownership. 3505 Spring Street sits within a federally designated Opportunity Zone, providing meaningful tax advantages for qualifying investors, and operates under a RUBS program implemented in October 2025 through which tenants pay approximately 90% of gross utility costs. With current rents averaging well below market across both properties — several tenants at 3411 having been in place since as early as 2008 — a new owner is positioned to systematically close the rent gap through annual AB 1482 increases and natural turnover. 3411 Spring Street was independently appraised at $3,550,000 in January 2026, underscoring the portfolio's strong in-place value. This is an exceptional opportunity to acquire operational scale on a single street in one of California's most supply-constrained multifamily markets.Investment Highlights:24 Total Units Across 2 Adjacent Properties on Spring Street, Paso RoblesPortfolio Asking Price: $5,000,000 — ~$263/SF (3411) and ~$380/SF (3505)Combined Stabilized Cap Rate of 7.17% at Market RentsAnnual Rent Upside of ~$155,400 Across Both Properties3505 Spring Street Located in a Federally Designated Opportunity ZoneRUBS Program in Place at 3505 — Tenants Pay ~90% of Gross UtilitiesBoth Properties Managed by MPM Inc. — Seamless Operational Transition3411 Spring Street Independently Appraised at $3,550,000 (January 2026)Zero New Multifamily Supply in the North SLO Submarket — Structural Rent FloorBuyers Making an Offer on the Entire Portfolio Will Be Given Preference