CALL FOR OFFERS - 14-Units Travis Park Apartments | Stabilized | Sherman, TX
Price: $1,300,000
Units: 14
BuildingSF: 10,236 SF
Stories: 2
# Building: 1
Property Type: Multifamily
Lot Size: 0.46 Acres
Built: 1965
Renovated: 2020
Cap Rate: 6.87%
NOI: $89,315
Cap (proforma) 7.31%
NOI (proforma) $95,094
Occupancy: 100%
Waller Group Properties is proud to present this 14 unit property in Sherman, TX. This is a turnkey investment, offering new ownership the opportunity to capitalize on a recently renovated property with below-market rents. The property is currently operating at an NOI of $89,315 at a 6.87% cap rate. The property was underwritten on annualized T-3 expenses in order to reflect stabilized performance. Due to the recent stabilization and minimal work needed on repairs, this asset will effectively operate on a low expense ratio.
The current average of effective rents is $1.02/sf while the average of comparable units in the area is $1.12/sf (Detailed on pg. 17). Increasing rents to this rate will realize an additional $12,840 in annual revenue. Pro Forma NOI is $95,094 at a 7.31% Pro Forma cap rate.
The current owner purchased property in 2018 and completed significant renovations (detailed below). The property is individually metered and tenants pay for electricity. Water, sewer, natural gas, trash, and pest control are included in the rent. The property features pier and beam foundation, with pitched roofs and individual HVAC units.
There is a contract maintenance worker who lives near the property and is on-call to handle all unit turns and maintenance requests. This maintenance person handled all unit turns and is willing to stay on the property with new ownership, eliminating the need for a large management fee. Median Household income within 3 miles of the property is $44,463.
All prospective buyers must submit a qualified offer prior to touring this property.
LOCATION OVERVIEW
With a population of over 42,400 residents, Sherman, TX is slowly becoming one of the next attractive "boomburbs" in the North Dallas market. Apartment rents in the Sherman-Denison Market were rising at a 1.1% annual rate during the third quarter of 2020, and have posted an average annual gain of 3.1% over the past three years. Over the past 5 years, employment in the local market has increased at an average annual rate of 1.4%, outpacing the National Average of 0.9%.
Sherman has become an attractive market for residents working in the West Plano and Frisco markets, but are looking for a more quaint residential atmosphere. The planned Dallas North Tollway extension,set to be completed in the next 5-10 years, will also make it easier for residents to commute to larger employment nodes in the region.
In the local economy, manufacturer Finisar is in the process of adding 500 high-paying jobs to the Sherman-Denison market. The largest current employers include Tyson Foods (1,700) and Texas Instruments (1,200), both of which are located in Sherman. There are two regional health centers in Denison: The Wilson N. Jones Regional Health System and the Texoma Medical Center.
Call Logan: 214-736-1500
Full details here: https://wallergrouphomes.com/properties/?propertyId=764366-sale