100840 . 124 Home SFR West Palm Beach FL

11-06-2021
11-09-2021

100840 . 124 Home SFR West Palm Beach FL, West Palm Beach, FL 33405

​Massive economic value add opportunity 
​Diverse home and unit mix in sought after West Palm Beach MSA  
​Currently, 100% occupied with fully vetted tenants 
​Top 20 rent growth market in the country according to John Burns 
​JBREC predicts 16% rent growth from today through the end of 2024  
​Home value growth is projected over 15% through 2024 
​Entry-level median home price today in greater MSA is $364K  
​5.2% YOY employment growth with a projected 7.8% growth rate through 2024 
​Extremely low housing supply driving value growth and rental growth 
​The significant rental upside as leases expire, nearly 20% under market rents 
​Recent YOY home price appreciation of 26% in West Palm Beach  
​Projected home price appreciation over 15% through 2024 
​Stabilized Year 1 Gross Yield 9.6% 
​Stabilized Year 1 Cap Rate of 6.18% 
​Leverage Year 1 IRR of 28.01% 
​One month supply of homes on market currently 
​Year 1 NOI at stabilization $1,898,873 
​All SVN® Offices Independently Owned & Operated
​Local Broker License Information: www.SFRhub.com/realstatelicensing
 

Property Description

Visit www.SFRhub.com and search for portfolio 100840 for more information.  

Contact:
TOM JOHNSTON 
Director of Brokerage Services 
SVN | SFRhub Advisors 
T: 602.825.1780 
C: 602.403.3695
tom.johnston@svn.com 
License #: BR507919000

BOR:
SVN | Commercial Partners
Ashley B. Bloom
Managing Director

This 124-home SFR and multifamily investment portfolio offers an investor a significant opportunity in the exceedingly strong and sought-after southeast Florida housing market.  This professionally managed home portfolio has a unique mix of single-family rental homes(58), townhomes(3), duplexes(13), condominium(1), triplexes(2), quadplexes(3), and small scale multiplexes(5, 6, & 7 unit buildings) offering a diverse, fully occupied, and value adds opportunity with multiple exit strategies in place.  All properties were purchased between 2014 and 2015 and have been well maintained by two local management companies.  The average vintage throughout the portfolio is 1970, with the SFR homes averaging 1,396 SF, the townhomes at 1,418 SF, the duplex units at 864 SF, the quadplexes at 881 SF, and the multiplexes at 683 SF.  This portfolio has historically operated at a high occupancy rate, consistently above 95%, and is currently at 100% occupancy.   

The next operator has a significant opportunity to value engineer this portfolio through various strategies given market conditions in the greater West Palm Beach MSA. This portfolio is under rented per the market by 22% and with additional Capex, stabilized year 1 rent is projected to be 30% above current rents throughout the portfolio.  With the current owner employing two separate property management companies, the next owner can gain economic efficiencies through consolidation.  While this portfolio has been extremely well maintained and monitored during the course of ownership, little capital expenditures have been invested, aside from necessary repairs such as HVAC replacements and turnover costs upon tenant vacancy.  This is a significant opportunity for the next owner who may want to gain access into the West Palm Beach market’s 26.1% YOY value increase, which is predicted to increase another 8% in 2022 & 2023 according to John Burns Real Estate Consulting.  This is not surprising given the extremely low supply of homes available on the market with less than 1.1 months' supply and strong 5.2%  employment growth YOY.   Rents have also increased by 6.1% YOY and are projected to increase by another 9.5% in the next 2 years per John Burns.  The West Palm Beach MSA ranks #19 out of the top 63 markets in the United States for rent growth through 2024.   

With such staggering home price appreciation, rent growth, employment growth, and a limited supply of available properties on the market, this portfolio is poised to take advantage of massive tailwinds moving forward.   The new investor has multiple opportunities to take advantage of an underserved portfolio, improve property conditions, consolidate management, drive rents and significantly improve revenue, all feeding and optimizing the NOI.  Projected Stabilized Year 1 rent collections are $2.948m, with an NOI of nearly $1.9m offering a Stabilized Year 1 Gross Yield of 9.6% and Year 1 Cap Rate of 6.18%.  
 

Key Property Information

Listing Status
Available
Multifamily type
Single Family Rental Portfolio
Price
$ 30,724,439
No. of Units
124
Cap Rate
5.31%
Building Size
138,656 Sq ft
Buildable Sq Ft
138656.00
Opportunity Zone
Off
Buy Side Fee
50%
Price per unit
$ 247,778
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