$14k/Unit Invested into the Majority of Units

Units have been very well maintained with additional upside available! Approximately 85% of the units have received $14k per unit toward modern interior renovations (lender-funded CAPX money!). Renovations include all new flooring, white appliances, tile backsplashes, light fixtures, fans, bathroom fixtures, doors, and paint. Approximately 30% of the units received new cabinets and countertops (if the cabinets had to be replaced, then the counters did too. The renovations have positioned the asset competitively within the submarket.

Significant Capital Improvements – Over $1.5M Invested

The current owner has completed more than $1.5 million in capital expenditures across both the interiors and exteriors of the property. Exterior improvements include new metal roofing, ~50% new double pane windows, parking lot repairs, upgraded railings, and new gutters. Interior renovations have been carried out across the majority of units, creating a consistent product offering with limited near-term capital needs. These enhancements establish a solid operational foundation for new ownership while also reducing exposure to major deferred maintenance.

$116/Unit/Month in Proven Value-Add Upside

With 1-bedroom units making up the majority of the unit mix, the property has achieved rents of $850 on 39 occasions, compared to the current effective rent of $792. Through the completion of classic unit renovations, targeted refreshes of renovated units, and exterior enhancements, $950 for 1-bedroom units is achievable – supporting an overall average rent (when taking into account the eight 2 BR units) of $958/unit/month. Comparable properties such as Pointe at East River are achieving $100–$200 higher rents for similar product.

MMG Real Estate Advisors
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