Waller Group is proud to present the 67-unit Cottage Row townhomes in Mabank, TX. Less than an hour from Dallas, Mabank benefits from proximity to Dallas due to primary lake destination as well as commuter residents to DFW. Mabank has very little competition and very little new inventory coming available, the immediate neighborhood has a Brookshires grocery store and Lowe’s Home Improvement within walking distance, as well as surrounded by new construction single family residential starting at $300,000+ per home and median income exceeding $58,000 per year. New development includes medical and more residential in the immediate area creating strong long term rental growth potential.
This is a rare opportunity to purchase well-maintained, recently renovated townhome style apartments in a high rent growth market with tremendous upside left on rent roll from existing rent and vacancy to new move-in rents. Current ownership increased effective rents 38.7% YOY, leaving strong upside in renewals and new move ins. Property is well constructed brick, low maintenance exteriors, no stair treads or common area amenities allowing low operating costs, plus townhome style ground level units with yards which provide a competitive advantage to traditional apartments and offer the ultimate amenity for pet owners. Property also includes a commercial storage building currently rented by WGPM management company. WGPM also has a property management contract in place and has demonstrated a strong track record repositioning property. Additionally, there is a roughly 800 SF space used as a laundry room that could be converted into a unit for additional income upside.
Current ownership has lightly renovated a majority of units, including paint, flooring to ensure all units have solid surface flooring in living, dining and halls, 2″ blinds, new toilet/plumbing fixtures, security cameras, parking lot repairs, doors & hardware, and some appliance replacement when necessary. They also created private back yards by adding wood privacy fences for every unit.
Current ownership is achieving $385,139 in annualized NOI based on December annualized income. New ownership, based upon area rent comps, can raise rents up to $139 / unit, which is a $0.16 / sqft rent bump. With this bump and normalizing rent roll with renewals to new move in rents, new ownership can achieve an annual NOI of $569,964. New move-in tenants pay $50 / month for water reimbursement, plus an additional $6 / month for pest control reimbursement.
The property currently has an annual contract in-place with Waller Group Property Management (WGPM. Management expenses are shared with 3 other properties in the area which lowers operating expenses and payroll per unit, making for efficient management costs. Manager will also qualify for 1 month management fee bonus when GPR is 92%+. Based on current trend should be before end of Q2 and this will be paid by current owner.