24 Unit Apartment Complex 20 out of 24 units are occupied

[Mark Callicott]

holesale 24 unit apartment complex

$150k Price Drop Now Asking $395,000
St Louis, MO
Value Add Opportunity at 83% Occupancy 20 out of 24 occupied

This complex is in the Bevo Mill neighborhood of St Louis which has experienced a large amount of development. The neighboring building was just completely rehabbed. The Bevo Mill is currently undergoing a 4 million dollar restoration. The St Louis real estate market experienced more growth than any other market in the country in 2016. The market outlook is fantastic but prices have not yet been driven up. St Louis is currently ranked #1 in the country for number of startups and startup growth.

The complex has been managed by the owner and most of the tenants have been there 5-16 years so the rents are way below market value. Currently grossing $7,000 monthly. It is a mix of Studio/1 bed/ 2 bed. There is the opportunity to bring in a management company and immediately raise rents while cash flowing and improving the condition and bringing to full occupancy. Potential to gross $10k+ monthly if brought to market rents.

Management had sent these projections based on current market rental rates on where she thinks this building should be performing.

Efficiency (350 sq ft) $350

Studio (425 sq ft) $395-425

1 Bed (550 sq ft) $490-525

2 Bed (800 Sq ft) $550-600

There isn’t a lot of available rental inventory close by which is good. Here is an overview of what is available

4746 Gravois, 1 Bed, 513 Sq. Ft. Located just down the street was recently completely renovated. 1 Bed $750 This is higher than you would typically see but I wanted to mention it bc the building is right by and the square footage of the apartment is similar. Most 1 Beds in the area are fixed up to rent ready condition(good enough to place a tenant) and rent for around $500.

There is a cool bar that just came up for lease that is next door(attached to the complex). I went ahead and included it for you to see. It has a lot of character. For Lease $2000

Here is a look at the Bevo Mill project and what the end result will look like

Building has newer EDPM roof
HVAC installed 2011 for each unit
Electric updated and each unit is separately metered
Broker Price Opinion Completed 3/29/17 After Repair Value $720,000
Property Inspected and Repair Estimate Provided by a Property Management Company $168,000
Some of the repairs they recommended I felt were not necessary but this is what they recommended. It may be possible to negotiate with them and also to eliminate certain repairs.
Property Management in place to handle the entire process for the investor after closing.

We have dropped price to $395,000 for a cash buyer who can close quickly. We have provided inspection, work quote, BPO, and management in place to take over for the investor at closing. We are not interested in offers with contingencies. Property is currently cash flowing with 20 out of 24 units occupied.

Feel free to contact me for more info
Mark Callicott
ROI Properites
[email protected]
5736297092
www.investSFR.com