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$4 million 436 unit Multifamily
Posted by: Willie Redd on 8/27/2010 10:04:14 PM
Funding Needed:
Above $1mil 		Category:
Real Estate / Construction 		Website :
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Location :
Houston, Texas, USA 		Viewed : 307 times
Favorited : 3 times 		Share
Description:
This is a 436 unit multifamily apartment building in Houston, TX for $4.3 million. This asset has an 85% occupancy rate, whereas the market occupancy rate is 95%. This complex has a value of over $9 million and that's a conservative number. The net operating income will come in at just shy of $900k with a gross annual income just shy of $2 million dollars. It currently has no down units and is located next to an upscale neighborhood. There are plenty of parking spaces for the residents and guest. There's a swimming pool as well as a club house located within the complex. There are a couple of laundry rooms as well. The noi doesn't include the laundry room income because the washers and dryers are being leased from another company. The plan is to have the current owners break the lease with the current washer and dryer company and purchase all new units with the ability to accept credit and debit cards.
There's plenty of upside on this complex although this property is currently performing very well. The market occupancy is 95%. We feel that a 90% occupancy for this complex is not out of reach, adding an additional 22 units to the performance of the building which will add an additional $44k to the noi pushing it well over $900k and adding an additional $440k to the value of the building. Also when we take over the laundry rooms. Those laundry rooms will be servicing at the very least 1 person for each of the 392 units. This means there will be at the very least 392 people washing their clothes at least 2 times per month, averaging at least 3 loads each time they wash. This is assuming that there's only one person living in each unit(This is a very conservative estimate). This will add an additional $57k to the noi, which will add an additional $570k to the overall value. We are already buying this complex for under 50% of value. With the upside potential, we can make the loan to value ratio closer to 40%.

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