Waller Group is proud to present the 73-unit value-add The Malibu Apartments property in Orangeburg, SC. The property has 12 buildings, each building has 1 floor, and contains a total of 73 units. Current ownership spent $21,200 on capex from 2021 through September 2022. Subject property is 1.5 miles away from both SC State University and Clafin University. Rents are under market creating opportunity for upside.
Current rents are 88.1% of top of the market rents (based on survey of rent comparables). New ownership has the opportunity to implement interior unit upgrade program with black or stainless steel appliances, upgraded flooring, upgrading plumbing & fixtures, and collecting additional other income through coin operated laundry. Current rent comparables achieving top of the market rents in the submarket contain laundry facility or W/D connections, 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 $203,859 in annual NOI. New ownership, based upon area rent comps, can raise rents up to $58 / unit, which is a $0.11 / sqft rent bump. With this bump, new ownership can achieve an annual NOI of $252,014.
The property is currently self-managed. Proforma financials were underwritten with a 8.0% management fee.