Waller Group properties is proud to present the 96.7% occupied value add property located in Canton, OH. Scenic Creek is settled in a residential neighborhood only 2.3 miles from the new $87 million plus, 1 million SF Amazon distribution center opening in 2023, which is scheduled to create more than 1,000 jobs.
Current ownership has renovated 100% of the units in the past 5 years (owner states bid estimates were between $4k – $15k / unit). Current ownership has spent $3k on exterior maintenance/upgrades. Interior upgrades include upgrading/replacing all the A/C systems and furnaces in the past 3 years, new flooring, paint, fixtures, appliances, plumbing, electrical, cabinets, and lighting.
Current ownership is achieving $44,220 in annual NOI. New ownership, based on area rent comps, can raise rents up to $231 per unit, which is a $0.31 / sqft bump. With this bump, along with select capex upgrades to reduce ongoing maintenance costs, new ownership can achieve an annual NOI of $183,840. Additionally, there is the opportunity to implement additional income fees through implementing a ratio utility billing system. Another cost saving opportunity would be through water conservation updates on faucets, showers, and low flow toilets, which can save up to 20% on water bills.
The property is currently managed for approximately 8.3% of EGI. Proforma financials were underwritten with a 8.0% management fee.