The Waller Group is proud to present the 81.3% occupied, 112- unit value-add property in Beaumont, TX. This property is available for a loan assumption at the Reserve Price.
Current ownership is achieving $284,745 in annual NOI. New ownership, based upon area rent comps, can raise rents up to $161 / unit, which is a $0.19 / sqft bump. With this bump, new ownership can achieve an annual NOI of $717,204. 69 units have had various degrees of renovations. 43 units are classic condition. Property has a tankless water boiler. Units are operated as All bills paid of which most of the market rental comparable operate in a similar fashion. Electric and gas are individually metered, and water is centrally metered.
The property’s low occupancy and seller’s motivation for selling are due to previous third-party management issues. Seller is now self-managing the apartments out of Houston. The property has a $5,700,000 loan balance with a 4.38% interest rate, 9 years remaining on the term, and 30-year AM. Interest only period expires August 2022, and the loan is with Fannie Mae. Buyer would look to assume the loan at an effective LTV of 62.3%. This is an attractive investment as a new loan would have similar leverage with an interest rate above 5% and similar loan terms.
Current management is being compensated at 3% of EGI. Proforma financials were underwritten with a 3% management fee.