124 Units | 2018 Renovations | Value- Add | Harlingen, TX

03-02-2022
06-30-2022

1501 Sam Houston Dr, Harlingen, TX 78550

  • 124 Units
  • 7.23% Cap
  • 11.74% Proforma Cap
  • 94.4% Occupancy
  • Harlingen, TX

 

Property Description

The Waller Group is proud to present the 94.4% occupied, 124- unit value-add property in Harlingen, TX. 60 of the units have undergone capital improvements such as a new roof (2020), flooring, granite countertops, new plumbing, lighting, and appliances. The property is available because current ownership is looking to reinvest proceeds. Current ownership is achieving $593,032 in annual NOI. New ownership, based upon area rent comps, can raise rents by $236 / unit, which is a $0.24 / sqft bump. With this bump, new ownership can achieve an annual NOI of $962,464. 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. The property currently has an assumable loan in-place. Prospective buyers can assume the current loan (5.95% interest rate) and acquire the property at a $6,700,000 purchase price, or alternatively purchase the property at the stated reserve price free and clear. Current management is being compensated at 3% of EGI with one maintenance tech and one leasing representative on-site. The current management has agreed to stay on for a year post[1]closing. Proforma financials were underwritten with a 5.0% management fee

 

Key Property Information

Listing Status
Under Contract
Listing Type
Highest & best offer
Price
$ 8,200,000
Year Built
1982
Year Renovated
2018
Opportunity Zone
Off
Price per unit
$ 0
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