Waller Group is proud to present the 100% occupied, 20-unit Caprice Apartments in the Bishop Arts neighborhood of Dallas, TX. The property is available because the current ownership is retiring. This property can be managed as-is, but highest and best use is likely as a covered land play for new townhome construction, or something similar, with proper dimensions and enough land SF to fit 14 townhomes (equating to $171,429 / lot). The subject property is located within PD-160. Current ownership is achieving $103,536 in annual NOI.
Under scenario 1: with light renovations, new ownership, based upon area rent comps, can raise rents by $530 / unit, which is a $0.72 / SF rent bump. Under scenario 2: with new townhome construction, based upon new construction rent comps, ownership achieve rents of $3,000 – $4,500 / unit. With this bump, new ownership can achieve an annual NOI of $202,345, under scenario 1, and more than 6x current NOI, under scenario 2. Additionally, there is the opportunity to raise additional income fees through implementing a ratio utility billing system (charging back for water, gas, electric, and trash), application fees, parking fees, and pet fees.
Another cost saving opportunity would be through water conversation opportunities, such as updates on faucets, showers, and low flow toilets, which can save up to 20% on water bills. The property currently has management in-place, but management will not transfer to new ownership. WGPM can manage for 7.0%*.