Finding the right buyer to target for 31 Student Rental Units?
All:
I am considering selling a portion of my portfolio that consists of 31 total units that consists of 11 SFHs, 7 duplexes, and one 6 Unit property. Here's some background:
- They are located in Columbia, South Carolina and are all college student rentals.
- They are all on separate tax parcels but are all within ~2 miles of each other and to the University of South Carolina.
- I have owned many of them for 5+ years and have had zero vacancies with most of them.
- There are 84 BRs total and bring in 55k/month in gross rent.
- They are fully leased, stabilized, and generally speaking, in good condition.
- I believe the valuation to be ~5MM if I sold them individually.
- I want to sell them together for 1031 purposes.
My questions are these:
What kind of legitimate buyer should I expect to buy these if I wanted to sell them collectively? It seems to me that someone with 5MM to spend would want to buy a MFH all on one parcel. I've also noticed that there appears to be a lot of "funds" and "groups" out there who don't have the experience or ability to close on a large project.
Is this too "big" to sell together based on per unit asking price? ~161k per unit seems to be pretty high for someone that has that much money to spend.
How big of a deal is it to a buyer in that price range to have actual financials (Trailing P&L, actual maintenance expenses, etc)? I run all of these properties through my personal returns as I am the sole owner and I don't have the pretty financials that a lot of institutional buyers would like to see. I do, of course, have hard numbers on leases, insurance, taxes, etc.
I'm aware that I could probably sell them for more individually, but am unlikely to do so based on my current business structure.
Appreciate any advice you may have.