Waller Group is proud to present this 171 unit, turn-key investment opportunity in Harlingen, TX. Built-in 1971, with renovations completed in 2020, the property consists of 66 – 1 bedroom/1 bath units (avg 662 SF), 8 – 1 bedroom/1.5 bath units (avg 875 SF), 71 – 2 bedroom/1 bath units (avg 868 SF), 15 – 2 bedroom/1.5 bath units (avg 900 SF), 10 – 2 bedroom/2 bath units (avg 1,024 SF), and 1 – 3 bedroom/1 bath unit (1,400 SF).
The units have undergone over $3.5 million in capital improvements such as a new roof, flooring, granite counter-tops, new plumbing, lighting, and appliances. As such, deferred maintenance is expected to be minimal in the future. Thanks to extensive improvements, the property is able to operate more efficiently as a new construction property which will continue for the new owner. Current management is 3% of EGI with approximately $4,000 / month payroll. The property currently has one leasing representative and one maintenance tech on site. Management has agreed to stay on for a year and proforma management fee has been adjusted to 5% of EGI.
This property currently operates at 92.4% occupancy. Currently, the property is operating at an annual NOI of $960,063. New ownership, based upon area rent comps, can increase rents by $0.08 / SF on average, leading to an annual proforma NOI of $1,108,361. Prospective buyers have the rare opportunity to instantly enter a rapidly expanding market as the market leader in quality while benefiting immensely from past groundwork laid by the current ownership. While job opportunities continue to increase in the region thanks to corporate relocation and commitments from the University of Texas at Rio Grande Valley, competition is relatively stagnant. Within a 10-mile radius, no units have been delivered since 24 units in 2019, and 0 units are expected to come online through 2022.