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Harlingen, TX 78550
- 49 Units
- 7.34% Cap
- 85.7% Occupancy
- Mixed-Use
- Harlingen, TX
- 2020 Renovations
Portfolio Description
The Waller Group is proud to present the 49-unit, mixed-use investment opportunity in Harlingen, Texas. Built in 1956 with renovations completed in 2020, the property consists of 10 1- bedroom units averaging 530 SF, 28 2-bedrooms averaging 906 SF, and 11 commercial units ranging from 1,472 SF to 12,000 SF. 18 of 38 multifamily units have undergone extensive capital improvements, such as new roofs, stoves, refrigerators, boilers, and HVACs. The commercial units all have new roofs, parking lot surfaces, and HVAC. Deferred maintenance is expected to be minimal in the near future. The multifamily portion of the property is currently operating at 81.6% occupancy, bringing in $21,707 in gross rental revenue per month. The current average effective rent for the multifamily units is $0.71 / SF, while the submarket is charging $0.81 / SF on average. The retail portion of the property has 78% of available SF occupied with 8 out of 11 tenants. The largest tenant by SF is Dollar General accounting for 12,000 SF. Dollar General's lease will expire in April of 2022 and has two options of 3 years each to extend. Currently their rate is $3.73 / SF NN annually. Dollar General is the leading dollar store in rural United States markets and sees these markets as an integral aspect of their business strategy. Current ownership is currently in negotiations with Dr. Garcia, DDS to occupy the 2,000 SF C-1113 suite on a NNN lease at 9.00 / SF annually. The expected move-in date will be April/May 2022. Currently, the blended financials are generating an annual NOI of $228,323 at a cap rate of 7.14%. The property must be sold as one but can be subdivided after purchase since current lien is for the entire project. This property presents a unique opportunity to maximize rents with professional management on both the retail and multifamily components of this property. Stabilizing the property by bringing the occupancy up on the multifamily and retail sides, while increasing rents to market rates allows new ownership to achieve an annual NOI of $350,666.
