61-Units Ray Real Estate Apartments | 7.26% Cap | Turn-Key Investment | Cleveland

Price:      $5,500,000

Units:      61

BuildingSF:   78,432 SF

Property Type:   Multifamily

Lot Size:   302,573 SF / 6.95 Acres

Year Built:   1997-2009

Occunpancy:   100%

Cap Rate:   7.26%

NOI:      $399,524

Cap Proforma:   7.38%

NOI Proforma:   $405,832

Description

Waller Group Properties is proud to present this 61-Unit, fully occupied investment opportunity in the college town of Cleveland, Mississippi. Located minutes north of Delta State University, the standalone townhome style community has been built in three stages: 1) 1997-1998 2) 2002 and 3) office building in 2009. The property consists of 49 2-bedroom units averaging 950 SF and 12 3-bedroom units averaging 1160 SF. This property has been fully stabilized post Covid and is bringing in $54,000 in gross rental revenue per month. The financials were underwritten based off the annualized revenues, expenses, NAA averages, and economic vacancy of 3% to account for possible non-renewals should the new owner increase rents. The property is currently operating at an annual NOI of $399,524 at a 7.26% cap rate. This is a turnkey investment, offering new ownership the opportunity to take over a fully stabilized property. The property offers passive income with minimal management resources required and situated in a location with a 1-mile median household income of greater than $58,000. The property is currently run with a full time handyman and is currently owner operated and managed. A 5% management fee has been factored into the proforma and cash flow analysis. An experienced property management team has been identified to take over responsibilities for the new owner who currently manage 20,000+ units. Installing a new management team will allow the new owner to realize rental growth possibilities and help stabilize expenses. The handyman is local to Cleveland and is willing to continue the working relationship. Pro Forma expenses are based on current expenses and adjusting accordingly to National Apartment Association Averages on the regional level. Taxes are estimated based off of purchase price and current county tax and millage rates. Pro Forma insurance is lower than current insurance based on new ownership achieving a quote more aligned with national and regional averages.

Location

With a county population of 30,000 and a student population of nearly 4,000 the town of Cleveland is home to the second judicial seat of Bolivar county. Cleveland is home to one of the largest pharmaceutical manufacturing plants in the country, operated by Baxter Pharmaceuticals. In the heart of Cleveland and less than a mile from the property lies Delta State University. Delta State offers both a perennially ranked Junior College football program and the towns cultural center. On the Delta State Campus one can find the 28,000 square foot Grammy Museum which provides a unique visitor experience, only found elsewhere at the sister Grammy Museum in Los Angeles. The town is ideally situated to support multi-family properties with both consistent job opportunities from large and lasting employers. The property has a 1 mile median household income of $55,123 and the city itself has seen an increase in one-year median property value growth up to $115,800. Currently there are no construction deliveries expected in the market for the next twelve months and have not been any delivered in the preceding 12 months. This means that increased competition from new and better renting opportunities are not expected to hit the market any time soon.

Call Logan: 214-736-1502

Full details here: https://wallergrouphomes.com/properties/?propertyId=870677-sale