Kevin Riles Commercial is pleased to offer this VALUE ADD Multifamily Opportunity with Strong In Place Income & CAP RATE. The Las Villas Apartments are a Garden Style Apartment complex originally built in 1969. The Unit Composition are Fourteen (14) Two Bedroom 1 Bath Units and Two (2) One Bedroom One Bath Units. The Current owners have done Major CAP EX over the last 12 months that include a NEW ROOF. There is still value add opportunity to update units to drive rent growth. It is currently 100% Occupied and according to the owner never has a vacancy over one month once a tenant leaves. The Units are separately metered for electricity with tenants paying their electricity bills. The owner pays gas (9 water heaters and 16 gas ranges), water and trash removal. There is also a small laundry room on site. Recent Capital Improvements Include Roof Replacement (Jan 2018), Various HVAC Replacement and Various Appliance Replacements.
The in place CAP RATE is Currently 7.8%. We used a vacancy factor of 3% based on strong demand for the apartments. HUGE OPPORTUNITY TO INCREASE RENTS!
LOCATION: The Apartment complex is located on the main thoroughfare in Galveston: Broadway St. It has an Extremely high traffic count and huge amount visibility. It is located just 8 Blocks from the Seawall and Beach to the South along 11th St and 5 Blocks from Stewart Beach along Broadway. Depending on new owners preference, some units with enhancements could be converted to weekend/AirBnB type Rentals over time.
VALUE ADD: There is significant upside to cosmetically improve the property regarding paint, flooring, facial board, etc. over time depending on a new owners rental strategy. There are currently eight units being leased to Section 8 tenants (reflected in attached rent roll).
