The Waller Group plans to close on the 98.7% occupied, 156- unit stabilized property in Amarillo, TX by March 31st. The property is a rare off-market opportunity available because current ownership is looking to retire. This offering is intended for lending purposes only.
Current ownership is achieving $576,208 in annual NOI. Move-in rents are 70% of current market rents at comparable vintage properties in Southwest Amarillo. New ownership plans to place $400k into exterior renovations, and $9,000 / unit on interior unit renovations. New ownership, based upon area rent comps, can raise rents up to $371 / unit, which is a $0.42 / sqft bump. With this bump, new ownership can achieve an annual NOI of $1,117,276. Additionally, there is the opportunity to implement additional income fees through pest control billbacks, billbacks on select maintenance requests, fines for lease violations, 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.
The property is currently self-managed. Proforma financials were underwritten with $150,000 in payroll accounting for 3 on-site personnel, and a 4.0% management fee.