The Waller Group is proud to present the 75% occupied, 12-unit value-add portfolio in Mesa and Phoenix, AZ. The property is available because current ownership is looking to reinvest proceeds.
Both of the subject properties have solar panels on their roofs. All of the units at 325 S Pioneer have been upgraded with new cabinets, flooring, windows, and paint. 3 of the units at 325 S Pioneer have mini splits and the remaining 3 have window units. All of the units at 21 W Tonto have mini splits. 21 W Tonto is located 1.2 miles from Arizona State University’s downtown campus and 1.5 miles from downtown Phoenix.
Current ownership is achieving $91,297 in annual NOI. New ownership, based upon area rent comps, can raise rents by $103 / unit, which is a $0.14 / sqft bump. With this bump, new ownership can achieve an annual NOI of $106,266. Additionally, there is the opportunity to implement additional income fees through implementing 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.
Current management is being compensated at 4% of EGI. Proforma financials were underwritten at 4% of EGI