Waller Group is proud to present this 38-Unit, multifamily investment opportunity in Henderson, Texas. Built in 1975 and renovated where the property was taken down to studs and then leased up in 2020 with over $1,100,000 spent in improvements. The property consists of 30 2-bedroom 1-bath units (698 SF) and eight 2-bedroom 1.5- bathroom townhouses (795 SF). The property currently operates at 100% occupancy, generating $29,890 gross rental revenue per month. Currently, the property has an annual NOI of $227,447 at a cap rate of 7.98%. The proforma financial statements are underwritten based on a 6% economic vacancy to reflect stabilized performance.
The average effective rents for the property are $1.00 / SF, while the submarket charges $1.09 / SF on average. Bumping rents to market will generate an additional $29,880 in annual revenue. Water, trash, and WiFi are included in the rent while tenants are responsible for electricity. There is the potential to charge back for water through a RUBS program. They also just leased out all 44 parking spots for $20/month each. There is room to build 16 more parking spots for $18,000, which will generate annual $3,840 in additional income. Current management is seller affiliated but is willing to stay on for an additional 12 months after sale, if requested.
Currently, the property operates with no on-site management or maintenance support. Located less than a mile from Henderson’s acclaimed downtown and Main Street, the combination of proximity to leading employers and zero new construction in the development pipeline should allow the property to remain competitive for years to come. The property is located less than 3 miles from 8 of the top 10 employers in the area and less than one mile from the city’s hospital. Leading employers’ close distance creates a reliable and employed tenant base that offers short drives to work at affordable prices.