The Waller Group is proud to present the 96.15% occupied, 26-unit stabilized property in Knoxville, TN. There are two buildings on site and one of them has recently undergone extensive renovations as the result of a fire in 2015. Renovations and repairs related to the fire were completed in 2016. The property is available because current ownership is looking to reinvest proceeds.
Current ownership has been working extensively to renovate the units. 21 of the 26 units have been renovated with new carpet and vinyl floorings. There is new plumbing in the building and current ownership added flood protection into the buildings and walls. The larger of the two buildings has a new roof as of 2016 and the other roof was replaced in 2011. All but one of the units have washer/ dryer connections and most come with a stacked washer/dryer setup. The property is situated adjacent to Gresham Middle School and just over half of a mile from Highway 71 which runs directly into downtown Knoxville.
The current loan on the property is not assumable. However, the current lender has expressed willingness to underwrite a new loan on the property to retain and maximize the CITC benefits associated with the present loan.
Current ownership is achieving $147,568 in NOI. New ownership, based upon area rent comps, can raise rents by $299 / unit, which is a $0.40 / sqft bump. With this bump, new ownership can achieve an annual NOI of $191,044. Additionally, there is the opportunity to implement additional income fees through implementing a ratio utility billing system, and parking fees.
The property is currently self-managed. Proforma financials were underwritten with a management fee of 10% of EGI.