Waller Group is proud to present the 116-unit value-add Terrace on the Green property in Moorhead, MN. The subject property consists of 5 three-story multifamily buildings. The subject property amenities consist of: on-site credit card operated laundry, fitness center, detached garage parking, private patios, in-wall A/C units, dishwasher*, stainless steel appliances*, build-in microwave*, and LVT flooring*.
Current ownership spent $809,745 over the last 5 years on the following renovations: building masonry, common area flooring, flat roof replacement on 3 buildings, installed new fence, interior painting, main entrance door replacement, retaining wall construction, brick cap, roof/ structure repairs, security camera installation, window treatments, unit flooring upgrades, cleaning and finishing upgrades, R&M projects, heating systems projects, plumbing projects, electrical/lighting improvements, tubs and surrounds projects, appliances and laundry updates, and millwork, countertops, and cabinets projects.
New ownership has the opportunity to implement interior unit upgrade program with black or stainless steel appliances, upgraded flooring, and granite countertops. Current rent comparables achieving top of the market rents in the submarket contain full size W/D units and stainless steel appliances.
Current ownership is achieving $478,976 in annual NOI. New ownership, based upon area rent comps and higher end finishes/ interior capex project being implemented, can raise rents up to $157 / unit, which is a $0.21 / sqft rent bump. With this bump, new ownership can achieve an annual NOI of $800,702. Additionally, new ownership has the opportunity to increase ancillary income by implementing a ratio utility billing system to bill back for water, gas, and trash valet fee. A myriad of additional income opportunities exist for the lot behind the property, including parking income, developing self-storage units to rent, etc.
The property is currently managed by current ownership’s property management company. Proforma financials were underwritten with a 5.0% management fee.
*Upgraded select units