The Waller Group is proud to present the 90.0% occupied, 40-unit property in Bridge City, TX. Bridge City is located 25 miles east of Beaumont and 100 miles east of Houston. The property is available because current ownership wants to reinvest proceeds. There is an outstanding loan that can be assumed with $1,804,567 outstanding balance, 6 years remaining, 30 year amo, and 5.02% interest rate (well below current interest rates).
Current ownership has renovated 38 units, 2 of which were converted into premium units with granite countertops. The roofs are all approximately 15 years old, and there is little deferred maintenance as the property has been well maintained. There is an additional opportunity to increase rents by adding washer/dryer hookups in all units; there is currently only 1 unit equipped with washer/dryer connections.
Current ownership is achieving $236,457 in NOI. New ownership, based upon area rent comps, can raise rents up to $114 / unit, which is a $0.12 / sqft bump. With this bump, new ownership can achieve an annual NOI of $278,646. Current ownership has received a quote to install W/D connections for $1,000 / unit. This would unlock an additional $125 / unit rent bump.
Current management is being compensated at 2.7% of EGI and proforma financials were underwritten at 5%. Current ownership recently hired a new manager for $2,000 / month.