Mercedes Palms

04-07-2022
06-30-2022

685 Chapman St Mercedes, TX 78570

  • 52 Units
  • 6.89% Cap
  • 8.51% Proforma Cap
  • 94.2% Occupancy
  • McAllen Market
  • Mercedes, TX

Portfolio Description

The Waller Group is proud to present the 94.2% occupied, 52- unit value-add property in Mercedes, TX. The roofs on the property were replaced in 2018 along with a majority of the windows. The property is available because current ownership is looking to reinvest proceeds. Current ownership is achieving $182,518 in annual NOI. New ownership, based upon area rent comps, can raise rents by
$86 / unit, which is a $0.11 / sqft bump. With this bump, new ownership can achieve an annual NOI of $225,492. Additionally, there is the opportunity to implement additional income fees through implementing a ratio utility billing system, lease violation fees, and parking fees. Another cost saving opportunity would be utilizing water conservation opportunities such as updates on faucets, showers, and low flow toilets, which can save up to 20% on water bills. Proforma financials were underwritten with a 5% management fee.

Key Portfolio Information

Listing Status
Available
Listing Type
Highest & best offer
Price
$ 2,650,000
No. of Units
52
Cap Rate
6.89%
Year Built
1985
Building Size
42,564 Sq ft
Price per unit
50,962
Opportunity Zone
Off
View broker details

26.146461, -97.904714

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