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.
Images
Highlights
- Status:
- Available
- Price:
- $32,500,000
- Cap Rate:
- 4.76%
- Annual Rent:
- $1,545,601
Property Information
- Property Type:
- Apartments
- Industry Type:
- Apartment - Multifamily
- Units/Spaces:
- 260
- Purchase Tenure:
- Fee Simple
Existing financing information
- N/A
The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.