This 11 unit apartment building is located 1/2 mile to the center of UNC campus and was acquired in 2009. Two story townhouse style units were completely gutted and rebuilt.
Since 1983 when the property was built ownership struggled with a poor floor plan design in the 3bd units, with one of the bedrooms at only 7 feet x 11 feet.
Historically only two tenants would occupy these units and use the small room as a study. We discovered that by moving the downstairs coat closet we could slide the stair stringers forward.
That allowed an additional 3 feet upstairs in that bedroom. In addition to opening up the floor plan and the standard high end updates, this small change attracted 3 tenants to these units and greatly increased value.
ACQUISITION
- Acquisition Date 4/5/2009
- Acquisition Price $1,017,000
- Monthly Rent at Acquisition $7500
- Cap Rate at Purchase 5
COSTS
- Total Hard Costs $415,000
- Total Soft/Entitlement Costs $80,000
- ALL IN COSTS $1,512,000
STABILIZATION
- Stabilized Monthly Rent $18,675
- Annual Net Operating Income $156,870
- Appraised Value $2,450,000