Strategic Value-Add Acquisitions
Portfolio Overview & Investment Strategy
Eaton Capital Group identifies high-potential multifamily assets where institutional-grade underwriting meet local market expertise. Our approach focuses on specific value-add triggers—operational efficiencies, physical capital improvements, and proactive asset management—to drive Net Operating Income growth and superior risk-adjusted returns for our partners.
Sacramento, CA
Strategic repositioning of a well-located Class C asset with meaningful value-add potential.
Townhouse Gardens is an 18-unit, townhouse-style multifamily property located at 6221–6225 39th St in Sacramento, CA. The community consists of three two-story buildings on approximately 0.65 acres, totaling about 15,800 SF. All 18 units are 2 bed / 1.5 bath, roughly 875 SF each.This asset represents a compelling value-add opportunity where Eaton Capital Group’s strategy is to transform the property into a modernized workforce housing community through both exterior and interior repositioning. The business plan includes:• Exterior upgrades: modern paint, refreshed landscaping, courtyard enhancements, improved lighting, and elevated community aesthetics to immediately improve curb appeal and attract higher-quality tenants.• Interior renovations: phased unit upgrades with luxury vinyl flooring, shaker-style cabinets, quartz-style countertops, updated fixtures, and modern finishes to move rents toward market levels.• Operational improvements: utility optimization, improved tenant screening, and structured annual rent growth designed to increase NOI while maintaining occupancy stability.The property’s townhouse layout and central courtyard create a strong “community living” feel that differentiates it from standard apartment product. This positions Townhouse Gardens for long-term cash flow growth, refinance potential, and increased valuation over an expected 3–5 year hold period.
Risk Management & Downside Protection• Acquire a fundamentally strong, cash-flowing asset in a high-demand Sacramento rental market.• Execute phased, in-place renovations to preserve occupancy and minimize operational disruption.• Use conservative rent growth assumptions, disciplined expense controls, and prudent reserves to support cash flow stability.• Maintain strong debt coverage, enhance security and maintenance standards, and pursue ancillary income opportunities to drive NOI growth and forced appreciation.Eaton Capital Group’s downside protection and risk management strategy is designed to prioritize durable cash flow, protect investor capital, and create value primarily through NOI growth rather than relying on aggressive market assumptions.
Target Hold Period
3–5 Years + 10–15% kicker on buyout and full capital return
Target Equity Multiple
1.8x – 2.1x
Target IRR Range
15% – 18%
Business Plan & Exit Strategy
Heavy Value-Add Repositioning with Refinance or Strategic Sale Exit
“After Vision” photo is for illustrative purposes only.
Roseville, CA
Strategic repositioning of a prime suburban asset with Opportunity Zone benefits.
Eaton Capital Group’s value-add strategy for the Roseville 27-unit property focuses on increasing net operating income through a combination of targeted interior renovations, operational improvements, and disciplined rent optimization. Units will be upgraded upon turnover with modern finishes such as LVP flooring, updated fixtures, and refreshed kitchens and bathrooms, allowing rents to be brought to market levels. Exterior enhancements, including paint, landscaping, and improved lighting, will elevate curb appeal and tenant demand. Operationally, we will implement professional management, standardize leasing, and reduce inefficiencies to immediately improve performance. Rents will be increased through a structured approach—leveraging both annual increases and repositioning under-market tenants—while maintaining strong occupancy. This execution is projected to grow NOI from approximately $327,000 to over $443,000 within five years, creating significant value through forced appreciation and positioning the asset for a refinance or sale.
Risk Management & Downside Protection: The property was acquired at a significant discount to replacement cost with conservative leverage. Downside protection is bolstered by the resilient Roseville submarket, diversified employment base, and our hands-on professional management approach which mitigates vacancy risk during the renovation phase.
Target Hold Period
5 Years + 2.5% equity after exit
Target Equity Multiple
1.8x - 2.1x
Target IRR Range
15% - 18%
Business Plan Type
Heavy Value-Add with Assumable Loan & Opportunity Zone Benefits
“After Vision” photo is for illustrative purposes only.
North Hollywood, CA
Morrison Apartments
Strategic 79-Unit Acquisition in a High-Barrier Submarket
Eaton Capital Group's strategy for Morrison Apartments centers on institutional-grade repositioning and density enhancement to unlock substantial value in this high-barrier submarket. Beyond interior modernizations, we are aggressively pursuing density upside through the integration of Accessory Dwelling Units (ADUs), significantly increasing the asset’s yield. By pairing these expansion initiatives with professional operational protocols, we aim to eliminate loss-to-lease and achieve premium market benchmarks. This comprehensive approach maximizes net operating income and capital appreciation, delivering superior risk-adjusted returns over a 5–7 year hold.
Risk Management & Downside Protection: The investment is de-risked through its location in the North Hollywood transit-oriented district, where housing supply remains constrained. Our capital stack is structured with conservative long-term debt to mitigate interest rate volatility. Additionally, a robust capital expenditure reserve is funded upfront to ensure all planned improvements are executed regardless of market fluctuations, providing a significant margin of safety on the cost-to-value basis.
Key Metrics
- Target Hold Period: 5 - 7 Years
- Target IRR Range: 14% - 16%
- Target Equity Multiple: 1.8x - 2.0x
- Business Plan Type: Core-Plus Value-Add
“After Vision” photo is for illustrative purposes only.
“After Vision” photo is for illustrative purposes only.
STOCKTON, CA
28–32 S. American St – The Reserve at Stockton (29 Units)
Strategic repositioning of a Class C asset in a high-growth, supply-constrained submarket.
Eaton Capital Group’s value-add strategy for the Stockton property centers on stabilizing operations and capturing significant rent upside through targeted renovations and disciplined management. With in-place rents well below market and operational inefficiencies present, the plan is to renovate units upon turnover with cost-effective upgrades such as new flooring, paint, and updated fixtures to support higher rental rates. At the same time, improved property management will focus on increasing occupancy, tightening rent collection, and reducing unnecessary expenses to immediately lift NOI. A structured rent growth plan—including gradual increases and repositioning under-market tenants—will be implemented while maintaining tenant stability. Light exterior improvements and enhanced curb appeal will further support leasing demand. Through this approach, the asset is expected to transition from an underperforming property into a stabilized, cash-flowing investment with meaningful NOI growth and long-term value creation.
Risk management is anchored by a high basis-to-replacement cost ratio and conservative leverage. Downside protection is further bolstered by the entry-level price point of the asset, providing a resilient buffer during market cycles. Our security strategy include rigorous tenant screening to ensure stable occupancy and asset preservation.
Target Hold Period
3 - 5 Years + 10% equity on exit
Target Equity Multiple
1.8x - 2.2x
Target IRR Range
15.0% - 18.0%
Business Plan
Value-Add Repositioning
Partner in Our Performance
Eaton Capital Group invites institutional and qualified individual investors to join our multifamily value-add platform. Request the full investment package for our current opportunities or schedule a direct consultation with our acquisitions team.
Important Disclosure: Real estate investments involve risk. Past performance is not indicative of future results. Eaton Capital Group does not guarantee returns or the achievement of business plan objectives. All potential investors should review full offering materials and consult with financial and legal advisors prior to investing.