The Waller Group is proud to present the 100.0% occupied, 12-unit value-add property in Phoenix, AZ. The South Phoenix submarket has one of the lowest average asking rents in the metro at $1,440 / month, and affordability is a key demand driver. Accordingly, high demand for affordable units has afforded landlords leverage to increase rents. This can be seen in the 21.3% 12-month effective rent growth. The property is available because current ownership is liquidating their smaller assets.
Current ownership is achieving $64,611 in annual NOI. New ownership, based upon new move-in rents, can raise rents by $427 / unit, which is a $0.71 / sqft bump. With this bump, new ownership can achieve an annual NOI of $122,476. Additionally, there is the opportunity to implement additional income fees through implementing a ratio utility billing system, and parking fees. Another cost saving opportunity would be utilizing water conservation opportunities such as updates on faucets, showers, and low flow toilets, which can save up to 20% on water bills.
The property is currently managed by GoRenter. GoRenter has agreed to stay on to manage the property for new ownership.