The Waller Group Properties is proud to present the 94.6% occupied, 56-unit Spring Creek Apartments in Henderson, Texas. Built in 1984, the property consists of 16 1-bedroom 1-bath units (695 SF), 32 2-bedroom 2-bath units (864 SF), 1 2-bedroom 2-bath unit (922 SF), and 7 3-bedroom 2-bath units (1,152 SF). New ownership is selling to acquire properties closer to home.
The property was built in 1984, and generates $39,910 gross rental revenue per month, with an annual NOI of $259,044 at a cap rate of 7.00%. Proforma financials are underwritten based on a 6.0% economic vacancy to reflect stabilized performance. New ownership, based on area rent comps, can bump rents by more than $80 per unit, which is a $0.09 / sqft bump. With this bump, new ownership can achieve an additional $54,000 in annual revenue. Gas, electric, and trash are included in the rent, tenants are responsible for water. New ownership can charge back for gas, electric, and trash, and further increase water reimbursements, through a RUBS program. There is also the opportunity to add additional income through parking fees.
Further increases towards income can be through water conservation opportunities such as reducing water irrigation, updates on faucets, toilets, and showers, which can save up to 20% on water bills.
Ownership is currently paying approximately 4.6% in management fees. Management consists of 2 people in accounting and leasing and 1 maintenance tech who oversee this property and one other in the East Texas area. New ownership has indicated this staff can be extended to new ownership. Prospective buyers have the rare opportunity to instantly enter a rapidly expanding market while benefiting from past groundwork laid by the current ownership.