The Waller Group presents the 66.67% occupied 6 unit value-add property in Phoenix, AZ. The property is available because current ownership is looking to reinvest proceeds.
21 W Tonto has solar panels on the roof, which have an assumable lease in place and all units have mini splits. The subject property is located 1.2 miles from Arizona State University’s downtown campus and 1.5 miles from downtown Phoenix. Current ownership has recently repaired ceiling drywall and interior paint along with replacing two water
heaters. They have also conducted major plumbing replacements.
Current ownership is achieving $43,472 in annual NOI. New ownership, based upon area rent comps, can raise rents by $155/unit, which is a $0.22/sqft bump. With this bump, new ownership can achieve an annual NOI of $48,107. Additionally, there is the opportunity to implement additional income fees through implementing a ratio utility billing system, lease violation fees, 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.
Current management is being compensated at 3.2% of EGI. Proforma financials were underwritten at 3% of EGI.