Annual Debt Service is $275,520 for the next 2 yrs. Then fully amortizing 30 yr loan thereafter.
New York Class C Multifamily For Sale
Garden Style Apartments.
Large 140 Unit Off-Market Multifamily.
Located in Upstate New York MSA (downtown urban infill location).
Cash on Cash Return: 11.03%!
100% occupancy now with a waiting list - averages 96% - 99% occupancy.
Owner has raised rents every year and will do so again.
Class C - 25-35% subsidized (not tax credit or subsidized building).
60 1 bdrms.
72 2 bdrms.
140 units total Rents vary by bdrm and unit sized $600 - $1,000.
Recently refinanced with a new, non-recourse, ASSUMABLE Freddie Mac loan.
This property is on track to generate aprox $1.2M Gross, $500k costs and $700k NOI.
The property accepts section 8 and all other forms of public assistance.
Avg about 95-96% Occupancy.
This is a very clean property.
The owners had an appraisal done last yr at 7% Cap Rate so they feel this is a more than fare valuation given:
- market in this NY city is stable with rises in rents
- values are trading at below replacement cost
- Property has Existing New Debt of $6.15M with Freddie Mac must be assumed (we just placed new debt on the asset last yr). Non-Recourse, 7 yrs fixed at 4.48%, with 2 yrs Interest only then 30 yr amortization which is the best debt out there.
- there is value add for installing additional energy efficiencies ie solar which if the owner does not get prompt offers they will be undertaking themselves that can increase NOI another $50- $75k/yr on top of rent growth and LL pays all utilities.
Borrower must assume debt from Freddie, so if they don't have a track record and are well capitalized this likely wouldn't work.
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