Property details

Arkansas Value-Add Class A Multifamily, Southeast Region

Property Description

The seller does have motivation to sell - all offers are encouraged 260 Garden-Style Units.

Newly constructed within the last 5 years.

Located in a major MSA of Arkansas.

Located in a "A" Location.

Located in a high income. low crime area.

The first value-add component lies in the fact that this property is currently mismanaged by an inexperienced manager.

The second value-add component lies in boosting occupancy. The current occupancy is 82%. The short story here is that this past couple years and present year is based off an average low-80s occupancy percentage. Everyone else in the area is 90%+. If someone can get their arms around the management, and gets this to 90%, they are likely up another $250K NOI.

The third value-add component lies in interior improvements. The current NOI is $1,545,601. The potential gross income at 100% occupied would be +/-$3.1M. That is if there are no renovations made. If someone were to put $7K-$8K into each unit, that 100% occupied number would likely be +/-$3.4M.

At market occupancy (to be conservative lets just use 90%), NOI is +/-$1,850,000 (5.7% CAP at ask price).

35 years remaining on an assumable note at 4.25% fixed Interest Rate and no prepay penalty (this may be the best selling point because at that rate, interest rates have spiked approx. 1.25% since making this loan worth about $2.9M today. In short, if a buyer were to get this financed on the same amortization for the same amount of debt to hit the same cash flow, they would have to pay $2.9M more for the property.

There is approx. $20M in debt remaining on the loan.

Great demographics / high incomes

Great Market

Strong retail and population growth trends

This property is in great shape and looks brand new.

This property is clearly being sold at below replacement cost.

There is a 250,000 SF headquarters under construction about 1/2 a mile from this property that will bring 900 jobs. This will have an immediate and positive effect on occupancy.

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Property Information

Property Type:
Industry Type:
Apartment - Multifamily
Purchase Tenure:
Fee Simple

Existing financing information


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