84 Unit Multifamily Apartment complex is up for grabs. Owner is asking $3M but I believe he will sell for less, possibly $2.75M.
Please message me if you know anyone interested.
Here's some more info - The property spreads over 8.22 acres (358,063 sf). It also includes a large piece of vacant land that can hold another building.
Number of Units 84 Asking Price $3M ($35,714 / Unit) --- He'll take $2.75M.
NOI $233,000 (but big time value add)
Unit Breakdown
1 Bed - 18 units - 536 sf - $414 rent ---- it was $354 when the owner bought it last year ($60 increase in a year) --- There was no any push back and no tenants left because of it.
2 Bed - 30 units - 776 sf - $447 rent
3 Bed -22 units - 988 sf - $549 rent
4 Bed - 14 units - 1200 sf - $599 rent
Occupancy Rate 90% * When the owner bought it a year ago, the occupancy rate was around 80%. He had to clean it up, so it went down to low 70's, and now it's in the 90's.
* The seniors have been there for many years (most of them over a decade). The families are also very steady.
Government Housing About 13 tenants receive government assistance. Some receive full financial support and some receive partial support. Those 13 are also mostly long term tenants.
Area Crime The current owner hasn't experienced any serious crime in his location.
The biggest concern is having drug dealers around but the management crew works hard to make sure that doesn't happen on their property.
On a regular day, kids play freely, ride bikes and have fun around the property.
Listing/Marketing Currently there is no leasing agent in place. The manager finds tenants. He is extremely well connected in the community, including HUD, ECHO and other home placement organizations.
These relationships make it easier to find tenants. Many times they help with rent as well, so if a tenant falls behind, the owner can go to these organizations (after filing eviction) and get them to bring the entire balance up to date.
What to Improve?
The owner believes that for a new owner to achieve rental growth and to have this property succeed, they will need a stronger property management in place.
The current management is Ok and very affordable but the property can use more oversight.
Additional
1. Burnt unit - It needs full renovation. Current owner hasn't used it.
2. Additional Income = $2400 (Laundry)
3. There is one storage unit. it's a 2 bedroom.
4. Typical turnovers can be done for $500 - $1000. Sometimes even less.
5. There are 2 in house managers.
6. There is a main maintenance guy who does all kinds of work including plumbing , ac-heating, etc. <head></head>84 Unit Multifamily Apartment complex is up for grabs.
Owner is asking $3M but he will sell for less- $2.75M.
Please message me if you know anyone interested.
