- Value-Add Potential
- Stabilized Asset with Operational Upside
- Utility Reimbursement Opportunity
- Prime Location
- Attractive Assumable Debt
Value-Add Potential
The property currently has 96 vacant units that require additional rehabilitation to make them rent-ready. Approximately $25,000 per unit is needed to fully complete the renovations, which will include installing a mix of LVP flooring and carpet, replacing water heaters and HVAC systems, placing new cabinets and laminate countertops, and painting unit interiors. Upon completion, the units will lease at nearly $1,000 for a 1BR and more than $1,100 for a 2BR, significantly enhancing the value of the asset.
Stabilized Asset with Operational Upside
The property includes 219 fully renovated and stabilized units, with further operational improvements on the horizon. One of the key opportunities is to capture the current ~10% loss to lease which could yield an additional $300,000 in revenue. In addition to capturing the loss to lease, there is the potential to drive additional ancillary income through initiatives like parking fees, utility billbacks for water, sewer, and trash, as well as the implementation of cable contracting and laundry services.
Utility Reimbursement Opportunity
The property’s trailing financials reflect a partially implemented utility reimbursement structure, which has yet to fully realize its potential. Currently, the billback for water, sewer, and trash is set at $65 per unit per month, which aligns with the standard in the submarket. At present, only about 40% of the potential utility reimbursements have been captured. This leaves a substantial revenue upside of over $100,000 to be realized once the full reimbursement structure is implemented.