21 Apartments – Healdsburg, CA


  • Total partnership equity capital approximately $1.3M
  • Target overall return on equity: >30% on completion plus expected appreciation
  • Holding period: 2-4 years
  • Investment: Minimum $50,000 / Maximum $350,000
  • Commitment deadline December 13, 2014.


  • Market rent levels are $1,450-2,100 for appealing units in excellent condition. Commuting distance to both San Francisco and Santa Rosa.
  • The local market has extremely low vacancy.
  • Healdsburg is enjoying continuing high quality restoration and development, and is considered “the Sausalito of Sonoma County”.


  • Location, seven blocks from the central Plaza, historic retail and restaurant center
  • Considerable non-structural deferred maintenance
  • Market rents for comparable apartments in good condition are $1,400-2,200/mo, Subject property currently rented for $800-950/mo
  • There are substantial potential operating cost savings to be had. Just one case: the water bill is an extraordinary $50,000/yr with no low use appliances or landscaping.

Drake seeks a tenant demographic more appropriate to the refined nature of the Healdsburg community, tenants who value good design and beautiful surroundings.

Repositioning will involve substantial improvements to both the property and management.