The Waller Group is proud to present the 95.9% occupied, 97- unit value-add Miller Arms Apartments in Sumter, SC. Current ownership has renovated the property: built a new deck, replaced water heaters, and updated a few of the units’ appliances. The property is available because current ownership is looking to mitigate the potential capital gains tax rate increase in 2022.
Current ownership is achieving $307,465 in annual NOI. New ownership, based upon area rent comps, can raise rents by $114 / unit, which is a $0.13 / sqft bump. With this bump, new ownership can achieve an annual NOI of $409,409. Additionally, there is the opportunity to implement additional income fees through refining the ratio utility billing system, adding month-to-month 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. Management upside exists in consolidating management with professional management experience versus the current payroll heavy expenses of an on-site manager. EASLAN Management quoted this portfolio at a 5% management fee, and will be reduced as rents increase.