The Waller Group is proud to present the 95.2% occupied, 126- unit value-add property in Elkin, NC. The property is available because current ownership is looking to reinvest proceeds.
83% of the units have new HVACs. 81% of the units have been renovated, and the other units are being renovated on turn. Current ownership has invested $2,000,000 in capital improvements in the last 2 years. Capital improvements include new counter tops, appliances, cabinets, flooring – LVP / carpet, paint, vanities, faucets, toilets, blinds, light fixtures, water heaters, 1/3 of the windows, front doors, subpanel, all exterior Zinsco panels have been changed (50% of total exterior panels), resurfacing the parking lot, all new roofs, new remodeled laundry room, and a new office remodel.
Currently the 2 BD / 1 BA units that are upgraded are receiving $80 more than the 2 BD / 1 BA units that are not upgraded. Current ownership estimates that there is still over $15,000 / month in rent growth opportunity based on the proven and tested move-in rates of the upgraded units. Current ownership is achieving $722,891 in annual NOI. New ownership, based upon area rent comps, can raise rents up to $165 / unit, which is a $0.20 / sqft bump. With this bump, new ownership can achieve an annual NOI of $1,017,682.
Currently there is believed to be a 15-year tax abatement on the property. Therefore, proforma financials were underwritten with a 0% tax increase. New ownership to confirm with current owner/county. Proforma financials were underwritten with a 3% management fee