Waller Group is proud to present the 72-unit light value-add Palmetto Villas property in Hartsville, SC. Current ownership is selling to reallocate capital.
207 14th St. has done extensive work, replacing 39 HVACs, improved grounds, resurfaced parking area, installed new security system, replaced many appliances, and painted hallways, doors, and a few of the units. Current ownership has renovated approximately 70% of interior units for around $7,000 / unit. These upgraded units saw an average of $150 / unit increase in rent. The roof was replaced around 2017 with architectural shingles. Current ownership recently started charging tenants for internet at around $85 / month (costs approximately $45 / month to ownership).
The subject property amenities consist of: central heat & air, kitchen, refrigerator, oven, range, tub/shower, W/D hookups, a clubhouse, ample parking, and property manager on-site.
New ownership has the opportunity to implement interior unit upgrade program with black or stainless-steel appliances, upgraded flooring, upgrading plumbing & fixtures, and adding full size W/D units into every unit. Current rent comparables achieving top of the market rents in the submarket contain full size W/D units, but contain dated interior finishes, so there may be additional room to set top of the market rents beyond where they currently stand.
Current ownership is achieving $292,964 in annual NOI. New ownership, based upon area rent comps, can raise rents up to $201 / unit, which is a $0.25 / sqft rent bump. With this bump, new ownership can achieve an annual NOI of $456,799.
The property currently has an on-site manager. Proforma financials were underwritten with a 5.0% management fee.