Rancho Cordova

Hotel-to-Apartments Conversion in Sacramento MSA

Vivo Investments LLC

Minimum Investment:



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Targeted Returns:
Download Offering Memorandum to View Returns

Targeted Hold Period:
24 months

Post-Converted Units:
158 Apartments Units

Fairway America Management Group IV LLC (“Fairway”) and Vivo Investments, LLC (“Vivo”) (collectively, the “Co-Managers”) have acquired a 158-room suburban upscale hotel (the “Property”) in Rancho Cordova, CA, previously operated as a DoubleTree Suites, and are in the process of converting it to 158 apartment units (the “Project”).

Investment Summary

  • Building Plans have Been Approved: The Property recently received building plan approval from Sacramento County for the change of use to residential apartments.
  • Doors Open March 1st: The first phase of the Project will open its doors to new tenants on March 1st. Pre-leased rental rates are exceeding proforma.
  • Well-Located to Meet Renter Demand: The Property is a 5-minute walk from the closest metro stop, which provides 20-minute access to Downtown Sacramento.
  • Class A Amenities at a Competitive Price: The units are in excellent shape and the common areas were recently renovated in 2016. The Property features Class A amenities such as a pool, jacuzzi, outdoor barbecues, fitness center, coworking space, and a clubhouse.
  • Investors will be Eligible to Receive Entire Preferred Return: Investors who make an investment into this project will be allocated an 8% annualized preferred return, dating back to July 2022, for no additional cost.

Jointly, the Co-Managers have acquired more than 20 projects together as part of an opportunistic strategy to acquire functionally obsolete hotels at an attractive all-in cost basis in undersupplied markets, and then convert them into competitively priced studio, one- or two-bedroom apartments. Once the Rancho Cordova conversion is complete, the Co-Managers intend to refinance or sell the Property. This is an ongoing construction project, and thus the spending, budgeting, financing, and completion percentages are changing as the project progresses. Of note, the Manager is considering strategies to provide a supplemental loan or other sources of capital to the project, in the event that additional funding is required.  Review the Project’s latest quarterly report here.


*The business strategy is subject to change. There are many risks to participating in this opportunity. See “Risk Factors and Fee Disclosures” in the Offering Memorandum for a discussion of some of these risks, including loss of capital, illiquidity, lack of diversification, and capital call risks. This opportunity is unsuitable for investors who are not prepared to hold their ownership position indefinitely and who cannot afford a complete loss of capital.

Property & Renovation Summary

11260 Pointe E Dr
City / State
Rancho Cordova, CA
Year Built
1988 (renovated 2016)
Hotel Rooms (Existing)
Multifamily Units (Est.)
Average Unit SF
Rentable SF
Weighted Average Underwritten Rent
Hard Costs/Unit
Expected Hold Period
2 years
Total All-In Cost