Astamar Asset Management

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Astamar Asset Management · 2026
Woodridge Apartments
Woodridge Apartments
Student Housing · Value-Add · Arcata, CA · 2026

1935 H Street
Arcata, California

A 126-unit multifamily asset adjacent to Cal Poly Humboldt — offered at $12M cash, representing an 8.44% going-in cap rate against a 6.9% market average. RUBS implementation, vacancy lease-up, and MTM lease conversion drive a 22% base-case IRR over a 3-year hold.

$12M
Offering price
126
Units · 3 types
8.44%
Going-in cap
22%
Target IRR
1.61×
Equity multiple
Investment thesis

Six drivers of
outperformance.

01
Cal Poly Humboldt demand anchor
Adjacent to a university targeting 50% enrollment growth with a $500M state investment. On-campus housing accommodates only one-third of students — creating a structural, persistent rental demand regardless of economic cycle.
02
Supply-constrained market
Zero new multifamily deliveries in the past 12 months. Only 71 units under construction — 2 affordable, none directly competing. Entry well below replacement cost at $95,238/unit vs. $156,000 regional average.
03
150 bps above market cap rate
8.44% going-in cap rate vs. 6.9% Eureka-Arcata market average. The spread is structural — driven by operational inefficiency, not asset quality. Cash flow acquisition eliminates financing risk entirely.
04
RUBS — the single largest lever
Owner currently absorbs all water and gas. Converting to a Ratio Utility Billing System shifts $40–80K annually to tenants. This single initiative alone can compress the cap rate by 30–65 bps at exit.
05
Immediate NOI improvement
8 vacant units + below-market MTM leases represent $157,896 in recoverable annual revenue. No renovation required — purely leasing and management execution within 90 days of close.
06
All-cash — zero rate risk
A $12M all-cash offer wins over a $12.3M financed offer in this market. No debt service means 100% NOI retention from day one. No refinancing risk, no lender covenants, no forced exit scenarios.
The asset

Woodridge Apartments
Physical overview

Woodridge Exterior Woodridge Interior
1895 & 1935 H Street · Arcata · CA 95521 · Adjacent to Cal Poly Humboldt
Property specifications
Addresses1895 & 1935 H Street, Arcata
Asset typeStudent/workforce multifamily
Year built1961 · 2-story garden style
Total units126 residential + 9 storage
Unit mix12 studios · 48 1BR · 66 2BR
Avg unit size686 sqft weighted avg
Rentable area86,184 sqft
Lot size3.13 acres (136,342 sqft)
Occupancy93.7% (127 of 135 res. units)
Monthly in-place rent$162,721
AmenitiesLaundry · storage · parking
Acquisition structureAll-cash · No debt
Unit mix & rent summary
TYPE UNITS AVG RENT VS. MKT
Studios12$1,043−3%
1 Bedroom48 (35 occ)$1,379−1%
2 Bedroom66 (59 occ)$1,502+3%
Total weighted avg126$1,364—
Market context — Eureka-Arcata
2.2%
Market vacancy
$1,221
Avg market rent
1.5%
12-mo rent growth
0
New units delivered
Financial performance

Two years of
verified income.

2025 total revenue
$1,966,754
+3.6% vs 2024
2025 total expenses
$941,483
47.9% expense ratio
2025 net income
$1,025,272
8.54% NOI yield on $12M
Adjusted NOI
$997,962
8.32% cap @ $12M
Adjusted NOI build — 2025
2025 net income (P&L)$1,025,272
+ Laundry (off P&L)+$31,612
+ Owner wages add-back+$12,000
+ Gifts/non-recurring+$12,078
− CapEx reserve−$63,000
− Other normalizations−$20,000
Adjusted NOI$997,962
Cap rate @ $12M8.32%
Laundry income — verified 12 months
Feb 2025$2,708
Mar 2025$2,389
Apr 2025$3,067
May 2025$2,676
Jun–Sep 2025$2,058–$2,701
Oct 2025 (peak)$3,225
Nov–Jan 2026$2,479–$2,718
12-month total$31,612
Market potential (126 units)$45–50K/yr
Year-over-year revenue comparison
2025 monthly revenue 2024 monthly revenue
Revenue comparison 2024 vs 2025.
Value-add strategy

Six levers.
All within our control.

$40–80K/yr
RUBS utility recovery
$133,920/yr
Vacancy lease-up
$23,976/yr
MTM lease conversion
$37,000/yr
Other income levers
Total annual NOI upside: $170,000–$215,000 — compresses exit cap rate and drives valuation gain
01
High priority
Utility sub-metering (RUBS)
+$40,000–$80,000/yr
Owner currently absorbs all water and gas. RUBS shifts $40–80K to tenants. Single largest NOI lever. Can be implemented at close or within 60 days via vendor contract.
02
High priority
Stabilize vacancies — 90-day plan
+$133,920/yr
8 vacant residential units leased at blended $1,395/mo. 5 near-term turnover units re-leased at or above market. Full occupancy targeted by end of Q2 2026.
03
High priority
Laundry contract renegotiation
+$14,000/yr
$31,612 current laundry revenue is below market (~$45–50K achievable on 126 units). New vendor agreement or revenue-share renegotiation at close.
04
Medium priority
Pet fee enforcement & expansion
+$18,000–$22,000/yr
$75/month policy in place but inconsistently enforced. Estimated 20–25 pets on property. Full compliance and pet-friendly marketing at acquisition.
05
Medium priority
Below-market MTM lease conversion
+$23,976/yr
8 units significantly below market on MTM. Key examples: Unit 08B $950→$1,495 (+$545/mo), Unit 16I-2 $700→$1,080 (+$380/mo). Natural turnover over 12–18 months.
06
Medium priority
Storage repricing & unit recovery
+$5,000–$8,000/yr
Current storage at $75–$125/unit is below market. Repricing to $150–$200/mo on all available units. Owner-occupied units released at close.
Investment returns · 3-year hold

8% preferred covered
in every scenario.

Bull case
26%
IRR · 7.0% exit cap · full RUBS + lease-up
NOI year 3$1,350,000+
Exit value~$19.3M
Equity multiple1.82×
LP pref coveredYes — all years
Base case ★
22%
IRR · 7.5% exit cap · partial value-add
NOI year 1$1,118,902
NOI year 3$1,277,728
Exit value~$16.7M
Equity multiple1.61×
LP pref coveredYes — all years
Bear case
14%
IRR · 8.5% exit cap · no value-add executed
NOI (flat)~$997,962
Exit value~$14.7M
Equity multiple1.36×
LP pref coveredYes — all years
Annual cash flow & LP/GP waterfall — base case
Line itemYear 1Year 2Year 3
Gross revenue$2,065,092$2,147,696$2,233,604
Operating expenses($946,190)($951,021)($955,876)
NOI$1,118,902$1,196,675$1,277,728
Cash-on-cash yield9.32%9.97%10.65%
8% LP preferred return$960,000$960,000$960,000
Excess cash flow$158,902$236,675$317,728
GP carry (30%)$47,671$71,003$95,318
LP upside share (70%)$111,231$165,673$222,410
LP effective yield8.93%9.38%9.85%
Interactive financial model

Stress-test
every assumption.

Adjust assumptions — all outputs update instantly
6.3%
$60K
7.5%
3 yrs
NOI waterfall
IRR sensitivity — exit cap vs hold period
Bull (full value-add) Base (partial) Bear (no value-add)
IRR across scenarios and hold periods.
Cash-on-cash & cumulative distributions
CoC yield (%) Cumulative distributions ($K)
Cash-on-cash by year.
Investment terms

How the deal
is structured.

Offering price
$12M
All-cash · No debt
Preferred return
8%
Per annum to LP first
LP/GP split
70/30
Above preferred return
Target IRR
22%
Base case · 3-year hold
Fee structure
Acquisition fee1.5% of purchase price
Acquisition fee amount$180,000 (one-time)
Annual management fee2% of gross revenue
Disposition feeNone
Promote triggerAfter 8% pref paid
Target hold3 years
Investor protection
8% LP pref — base caseCovered — all 3 years
8% LP pref — bear caseCovered — all 3 years
Equity multiple — base1.61×
Equity multiple — bear1.36×
Offering typeReg D · Rule 506(c)
Accreditation requiredYes · verifyinvestor.com
"The 8% LP preferred return is covered in both the base case and the bear case — purely on in-place NOI growth, with no reliance on cap rate compression or market appreciation to deliver it."
ASTAMAR ASSET MANAGEMENT
Rent roll · February 2026

Unit-by-unit
income detail.

127
Occupied of 135 res.
$162,721
Monthly in-place rent
$1,952,652
Annualized revenue
$1,364
Weighted avg rent
Below-market / MTM upside units
UnitTypeLease sinceCurrent rentMarket rentMonthly upside
08B2BR MTM2020$950$1,495+$545/mo
16I-2Studio MTM2016$700$1,080+$380/mo
03B2BR MTM2002$1,165$1,495+$330/mo
Unit 131BR MTM2020$1,095$1,395+$300/mo
Annual upside from natural MTM turnover (12–18 months)$23,976/yr
Rent roll by unit type — scheduled vs potential
Unit type# UnitsAvg sqftSched rentRent/sqftMonthly incomePotential rentPotential/mo
1 Bedroom48535$1,263$2.36$60,607$1,364$65,460
2 Bedroom66847$1,496$1.77$98,735$1,586$104,690
Studio12400$1,048$2.62$12,575$1,200$14,400
Total / weighted avg126686$1,364$1.99$171,917$1,465$184,550
Gross annualized (scheduled): $2,063,004 Gross annualized (potential): $2,214,600 Upside: $151,596/yr
Risk factors & mitigants

Disclosed upfront.
Managed at close.

Deferred maintenance
High
Built 1961. Maintenance costs rose 25% YoY ($232K→$290K). Materials job in 2024 was $109K — possible capital misclassification.
Mitigant: Full PCA and reserve study required as hard closing condition. Credit negotiated for any identified deferred items above threshold.
Holdover / expired leases
High
Three units (04A, 02A, 06B) have leases expired 6–8 months ago with no renewal. California tenancy law creates legal exposure.
Mitigant: Seller required to resolve all holdover situations prior to close or escrow holdback established. Legal counsel engaged at signing.
Utility easement
Medium
An unresolved utility easement is being evaluated. Potentially prevents original contractor's planned construction on the site.
Mitigant: Clean title required as closing condition. Easement does not affect income-producing operations; any cloud cleared before funding.
Declining local population
Medium
CoStar demographics show 2-mile population declining 0.5% through 2030. Household formation slightly negative.
Mitigant: Cal Poly Humboldt enrollment growth is the primary demand thesis — counter-cyclical to residential population. Closely monitored.
Rising vacancy trend
Medium
Property vacancy moved from 2.4% to 3.2% over the past year, slightly above the 1.4% competitor average.
Mitigant: Current 8 vacancies actively leasing. Stable 2BR portfolio (only 1 vacant) offsets 1BR softness. $1,395 1BR rents well within market.
Single-market concentration
Low
Arcata/Eureka is a small secondary market with limited transaction volume. Exit liquidity is thinner than major metros.
Mitigant: Entry at $95K/unit vs. $156K regional average creates natural downside floor. Cash buyer market favors private transactions.
Buy with Conviction.
→
150 bps spread over market cap rate
→
8% LP preferred covered in every scenario
→
RUBS + lease-up add $170K–$215K NOI
→
22% IRR · 1.61× multiple · 3-year hold
→
$12M cash offer wins over $12.3M financed
→
Rule 506(c) · Reg D · Accredited investors only

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This offering is available exclusively to accredited investors. Contact Astamar for subscription documents,
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Email
invest@astamarholdings.com
Phone
+1 (619) 241-4954
Office
701 Palomar Airport Rd · Suite 300
Carlsbad · CA 92011
REGULATION D — RULE 506(c): This offering is made pursuant to Rule 506(c) of Regulation D. Securities have not been registered under the Securities Act. Available exclusively to accredited investors. Verification through verifyinvestor.com. Investment involves substantial risk including potential loss of principal. Past performance is not indicative of future results.