Available | Portfolio Sale, AL | 160 Units

INVESTMENT SUMMARY

Year Built:
1994-1999
Total SF:
143,936 SF
Total Units:
160
Occupancy:
98.13%
Avg Unit Size (SF):
900 SF
LIHTC Rent
$438 ($0.49 PSF)
Proforma Market Rent
$556 ($0.62 PSF)

Contact

Donald Gambril | dgambril@rockadvisors.com | 205.458.8110
Mike Baker | mbaker@rockadvisors.com | 205.458.8112
Micah Dodd | mdodd@rockadvisors.com | 205.458.8021
Bo Farlow | bfarlow@rockadvisors.com | 205.458.8120
To access the password-protected files below, you must submit a confidentiality agreement.
  • Gateway Portfolio_OM
  • T12_Westfork_3.31.19
  • T12_PebbleCreek_3.31.19
  • T12_Meadowview_3.31.19
  • T12_HunterPointe_3.31.19
  • T12_DoubleCreek_3.31.19
  • PropertyTax_Westfork_2018
  • PropertyTax_PebbleCreek_2018
  • PropertyTax_Meadowview_2018
  • PropertyTax_HunterPointe_2017
  • PropertyTax _DoubleCreek_2018
  • PebbleCreek_Replacement LURC - LIHTC
  • PebbleCreek_Replacement LURC - HOME
  • Westfork_LURC_LIHTC
  • Westfork_LURC - HOME
  • Meadowview_LURC - LIHTC (4)
  • Meadowview_LURC - HOME (3)
  • HunterPointe_LURC - LIHTC (2)
  • HunterPointe_LURC - HOME (1)
  • DoubleCreek_LURC - LIHTC
  • DoubleCreek_LURC - HOME
  • 8609_DoubleCreek
  • 8609_Westfork
  • 8609_PebbleCreek
  • 8609_Meadowview
  • 8609_HunterPointe
  • Rent Roll_Westfork
  • RentRoll_Pebblecreek
  • RentRoll_Meadowview
  • RentRoll_HunterPointe
  • RentRoll_DoubleCreek

INVESTMENT HIGHLIGHTS

Significant Revenue Enhancement via Qualified Contract Process

There are $118 rent increases available to a new purchaser by converting all assets to a market rate. These rent increases are based on comparable properties in each respective market, and translate to a 27.1% increase to GPR across the portfolio. Once a new investor finalizes the qualified contract (QC) process and removes affordable housing restrictions, they can take advantage of this delta. The portfolio averages 98.13% occupancy, and the comp sets average 96% occupancy. The strong historic demand within the subject properties coupled with tight rental markets gives ample support for these rent increases.

 

Tremendous Expense Reduction via Qualified Contract Process

By taking the properties through the QC process, new ownership can reduce operating expenses associated with the affordability compliance. Current operating expenses are $4,286 per unit, while conventional properties in comparable markets average $2,946 per unit. Reducing this $1,340 per unit delta brings the expense ratios for the subject properties closer to 50%, which is typical for conventional properties. Once the QC process in complete, the expense savings are realized immediately.

 

Strategic Locations

Each asset is strategically located within its respective market. The fact that they were originally LIHTC developments gives further merit to the locations, as they had to score well to receive funding. Residents are in close proximity to major employers, retailers, schools, and major thoroughfares. The portfolio is 98.13% occupied, which further validates the strength of the locations.

 

Outstanding Physical Characteristics

Built from 1994 to 1999, the properties feature pitched roofs, brick exteriors, steel framed stairs and railings, double-pane windows, and other desirable characteristics. Double Creek, Westfork, Hunter Pointe, and Pebble Creek all include washer and dryer connections in each unit. Attentive ownership, along with compliance requirements, has ensured that each asset is in prime condition with no immediate capital needs for roofs, exterior work, parking lots, or mechanical systems.