The Waller Group is proud to present the 78%% occupied, 123- unit value-add property in Lufkin, TX. The property is available because current ownership is looking to sell off Texas assets, because he is based in Tennessee.
Current ownership is achieving $169,567 in annual NOI. New ownership, based upon area rent comps and stabilization, can raise rents by $209 / unit, which is a $0.27 / sqft bump. With this bump, new ownership can achieve an annual NOI of $540,400. Additionally, there is the opportunity to implement additional income fees through a ratio utility billing system, lease violation fees, 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 a 8.0% management fee.