The Waller Group is proud to present the 74.1% occupied, 58- unit value-add property in Killeen, TX currently in lease-up. Current ownership has spent $350,000 in updates to the exteriors alone by replacing all of the plumbing, electrical, and windows. Additionally, they have renovated 90%+ of the units with the following: flooring, fixtures, paint, countertops, and appliances. One unit is currently used as an office but can be converted back to an income-producing unit. Current ownership is looking to sell the property to divert funds into a recent larger acquisition.
Current ownership is achieving $214,622 in annual EGI. New ownership, based upon area rent comps, can raise rents by $321 / unit, which is a $0.55 / sqft bump. With this bump and lease-up of vacant units, new ownership can achieve an annual NOI of $371,090. Additionally, there is the opportunity to implement additional income fees through implementing a ratio utility billing system, late fees, MTM fees, and parking fees. There are no military tenants currently at the property.
The property is currently self-managed and the owners would be open to staying on with management per the buyer’s request at the current fee. Proforma financials were underwritten with a 5.0% management fee. The current owner also owns the lot of land next door and would consider selling with the apartments.