Project Category: Substantial Improvement Property
16 apartment units with on grade parking + 430 square feet of personal services retail space. Located in an OZ less than one mile from Cal Poly San Luis Obispo and Downtown SLO.
Project Qualification: Substantial Improvement PropertyReal Estate:
Non-Real Estate: CaliforniaTotal Capital Required: $1,800,000Equity Required: $2,250,000Debt Required: $4,190,000Project Control: We own all the key propertyTimeline: Less than 30 daysAddress: 1121 Montalban St San Luis Obispo California 95959 United States
Student Housing in San Luis Obispo
Provide new high quality student housing for students attending Cal Poly San Luis Obispo. New student housing in close proximity to the University is in very short supply.
Development The proposed development will consistent of one building containing 16 apartment units with on grade parking. In addition, there will be a 430 square foot personal services retail space. The property is located in an Opportunity Zone, which offers significant Federal tax advantages for those that qualify.
Location 1121 Montalban Street, San Luis Obispo. The site is located in close proximity to Santa Rosa Park and less than one mile from Cal Poly San Luis Obispo and Downton San Luis Obispo.
Current Property Condition
The Site has an existing single family detached home on the site which was constructed 65 years ago. The site will be demolished in December in preparation for construction.
Abutting Land Uses & Current Entitlements Montalban Street has older apartment buildings, commercial and single family homes on the street.
The property has been approved by the Planning Commission. The project is in conformance with the community plan and zoning regulations. There are no discretionary approvals necessary for this project.
Building Plans The building plans and elevations are included as exhibits. The building plans have been submitted to the City and are approved. The project is in an RTI (ready to issue a building permit) status. The remaining items to be completed are payment of school and building permit fees.
Target Market Cal Poly students between their sophomore and senior year of university. The students as well as their parents are looking for a new apartment product containing the latest amenities and product finishes at a competitive market rate.
Product & Rents The product for the apartment units are as follows:
Bed/Bath # of occupants Base Rent per occupant
1 Bedroom Market Rate 16 $1,250
1 Bedroom Affordable 4 $875
2 Bedroom Market Rate 12 $1,250
1 Bedroom ADU 2 $950
Commercial rental 0 $860
Parking 16 $100
All units will be fully furnished and have a washer/dryer in each unit.
The land was purchased on November 20, 2020 and building permits will be paid for shortly thereafter. Construction will commence immediately thereafter and be completed in 15 months. The lease up period is estimated to be three months for a total duration of 18 months.
The project will secure a construction loan which will be guaranteed by Stephen C. Ross and Montage Development, Inc. Montage Development will also provide a Completion Guarantee.