CALL FOR OFFERS due Noon of 07/28/2020 - 16 unit MF Caldwell Courts - 8.27% Cap - Dallas, TX

Price:         $1,220,000

Units:         16

Property Type:      Multifamily

Building Size:      10,400 SF

Class:         C

Stories:      2

#Buildings:      2

Occupancy      100%

Total Lot Size:      0.34 Acres / 14,810 SF

Year Built:      1963

Renovated:      2018-2019

NOI:         $100,927

Cap Rate:      8.27%

NOI (Pro Forma):   $106,519

CAP Rate (Pro Forma):   8.78%

Description

**** All offers due NOON of 07.28.20. Email all offers to [email protected]. To tour the property contact [email protected]****

Originally built in 1963, this 16 unit Affordable Housing property in Southeast Dallas is currently operating at an NOI of $100,927 at an 8.27% cap rate on actuals. This is a turnkey investment offering the opportunity to capitalize on recently renovated interior units with room to increase rents. The average effective rent is $1.29/sf, while the average market rate is $1.41/sf. Increasing rents to this rate will realize an additional $14,000 in annual rent revenue.

In 1997, this property was completely renovated to the studs with all new electrical panels. Interior units renovated from 2018-2019 feature: New light fixtures, counter tops, two-tone paint, solid surface flooring throughout in all units, automated gate, security, laundry facility.

The property was analyzed on T-1 economic vacancy due to prior mismanagement and issues with evictions. New portfolio manager has increased occupancy to 100% and is more indicative of property performance moving forward. The current management team operates at a 5% fee and is willing to stay on with new ownership. Their experience in this region has allowed them to capitalize on rent growth opportunities while maintaining strong occupancy.

The property is conveniently located less than 5 miles from the heart of Downtown Dallas and offers quick and easy access to major highways and employment nodes. This is a rare opportunity to invest in an Affordable Housing, Opportunity Zone property right in the urban core of a major U.S market. The current owner is looking to reinvest their capital in a larger asset.

Location

Less than 5 miles from the Central Business District, the Southeast Dallas/Fair Park submarket offers great proximity to major employment nodes in one of the largest markets in the country. Although the submarket has historically suffered from a weak local economy and high crime rates, many developers have targeted this area as the next big thing in Dallas.

The Fair Park area of Dallas is directly adjacent to Deep Ellum, which has seen considerable amounts of development in its retail and office sectors with projects such as The Epic, Baylor Scott & White, and Uber which began construction on a brand new office complex in the area. These projects will attract many high earners to relocate in the submarket.

Inflated pricing in the Downtown, Uptown, and Park Cities markets have prompted investors to search for more affordable options with high upside in Southeast Dallas. Annual turnover in the submarket has averaged almost 15% since 2014, driven by healthy sales activity in older, vintage properties. Most of the rent growth seen in Southeast Dallas recently has been concentrated in Class B and C properties, which have averaged over 5% annually over the past few years.

Call Logan: 214.736.1500

Complete details here: https://wallergrouphomes.com/properties/?propertyId=441737-sale