Waller Group is proud to present the 95% occupied, 20-unit Harvey Apartments in McAllen, TX. The subject property is a value-add asset in a rapidly growing part of the Rio Grande Valley.
Current ownership has implemented substantial improvements, including new roof, new HVAC, a new parking lot, new appliances, flooring, water heaters, and fencing, with 80% of the units renovated. Current ownership is achieving $75,013 in annual NOI. New ownership, based upon area rent comps, can raise rents by $225 / unit, which is a $0.29 / sqft bump. With this bump, new ownership can achieve an annual NOI of $124,269. Additionally, there is the opportunity to implement additional income fees through implementing a ratio utility billing system, application fees, parking fees, and pet fees. Another cost saving opportunity would be through 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; however, current and proforma financials were underwritten with a 7% management fee to take into account higher expenses for new ownership.