- Proven Premiums Of $195+/Unit Above Current Rents on Recent 12-Month Leases
- Additional $90+ of Rental Upside Proven In The Market
- Incredible Basis For The Vintage
- Significant Utility Reimbursement & Other Income Upside
- Highly Attractive Unit Mix With Large Condo And Adult Living Units
- Phenomenal Location Proximate To Top Employers And Retailers
- Exceedingly Strong Historical Operational Trends
- Offered Free And Clear Of Existing Debt
Premiums of $287+ Per Unit Above Average In-Place Rents
With current leases significantly below market rate averaging just $1,113 per unit, Jefferson Crossings offers the opportunity to capture substantial rental upside that’s notably achievable without completing ANY interior renovations beyond ordinary unit turns. Further, demand has already been proven at the asset level with new leases signed $195+ above the current average on 12-month leases. In addition to the proven upside, submarket comp sets support an additional $92 per unit per month of organic upside while trending below newer assets!
Significant Utility Reimbursement & Other Income Upside
Historically, the landlord has absorbed the cost of utility expenses in their entirety. However, it’s increasingly common in the submarket to charge tenants for water and sewer costs. Implementing a utility reimbursement program, on the 45 market-rate units, based on a flat fee structure of $50 for one-bedroom units and $75 for two-bedroom units enables the ability for new ownership to push annual revenue over $33,000.
Additionally, the operations offer further upside via charging fees that are more in-line with market (see ‘Other Income’ chart on page 22) and by bringing the 36 garage rents up from $125 to $150 which has already been achieved.
Highly Attractive Unit Mix with Large Condo & Adult Living Units
The complex has the ability to accommodate a myriad renter lifestyles and multiple household sizes with a mix of both one- and two-bedroom senior units of over 900 sqft each, as well as two- and three-bedroom market rate (condo) units starting at 1,100 sqft.
Overall, there are 62 adult living units limited to age 55+ (which amounts to 58%), and 45 market-rate units (amounting to 42%). The unique assortment of unit styles and available size options makes the property more appealing to a larger, more diverse tenant base.
