The Waller Group is proud to present the 62.4% occupied, 101- unit value-add Steeplechase Apartments in West Memphis, AR. The property consists of 12 buildings, plus 1 maintenance building. At 62.4% leased, Steeplechase Apartments offers investors the opportunity to purchase an existing asset in a market with low supply and no planned unit deliveries over the next 2 years. Investors have the opportunity to create additional value through lease-up of 4 make-ready status units, renovating the 17 completely down units, starting renovations on the 6 partially down units, finishing renovations on the 11 remaining partially down units, implementing a ratio utility billing system, and through water conservation opportunities, such as updates on faucets, showers, and low flow toilets, which can save up to 20% on water bills. All of the move-in ready units are occupied and fill quickly by word-of-mouth alone (no advertising).
Current ownership is achieving $59,594 in annual NOI. New ownership, based upon HUD fair market rent documentation, can raise rents by $403 / unit, which is a $0.41 / sqft bump. With this bump, and leasing up vacant units, new ownership can achieve an annual NOI of $715,214. Property management is local and consists of 1 property manager and 2 maintenance technicians. Management expenses total 5.8% of EGI. New ownership will have to find new property management, but 1 of the maintenance technicians can continue with new ownership.