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Luma Terrace Apartments 1660 E Summit St 36 Unit Apartment Building $2,350,000 ($65,278/Unit) 7.02% Cap Rate Red Oak, IA 51566
Executive Summary
Exceptional Properties Group is honored to present a 36-unit multifamily investment opportunity in Red Oak, Iowa. The investment consists of 7 multifamily buildings, with onsite Office facility, Common Area Laundry, Playground, and a personal inventory storage structure for management. A majority of the apartments that have been renovated just within the last few years and historic occupancy stabilizes between 93-97%. Continued demand for renovated rural 2 bedroom units within the community have steadily been increasing average rents into higher tiers as demographic household income rises. This asset offers an established historical affordable-housing operating model with the advantages of recent turn key unit turnover consistency to bring continued proof of concept Value-Add stabilization towards market rates. The units are larger than your typical due its year built of 1979 against many local options and approximately 75% of the units are a consistent level product type throughout. The campus creates an ambiance that is hard to reproduce and can be given some flair to attract and introduce a younger demographic as household income rises among professional/trade craft entry work. Topped off with a bonus feature of including additional land for future development, public-private community/park events during the summer, RV parking, and/or more creative financing opportunities.
The Proforma reflects the ability to mark-to-market asking rents through various value-add or aesthetically changing improvements and by implementing RUB's on utilities for ~10% additional revenue projection increase. The property also provides longer-term repositioning optionality for an investor seeking to transition toward conventional market-rate or workforce housing, subject to applicable various other requirements and approvals. Situated on approximately 5.43 acres. Additional units remain to be renovated - Prospective Purchasers can have further avenues of revenue driving mechanics to further influence overall return.
The Proforma reflects the ability to mark-to-market asking rents through various value-add or aesthetically changing improvements and by implementing RUB's on utilities for ~10% additional revenue projection increase. The property also provides longer-term repositioning optionality for an investor seeking to transition toward conventional market-rate or workforce housing, subject to applicable various other requirements and approvals. Situated on approximately 5.43 acres. Additional units remain to be renovated - Prospective Purchasers can have further avenues of revenue driving mechanics to further influence overall return.
Property Facts
| Price | $2,350,000 | Apartment Style | Garden |
| Price Per Unit | $65,278 | Building Class | C |
| Sale Type | Investment | Lot Size | 5.43 AC |
| Cap Rate | 7.02% | Building Size | 25,500 SF |
| No. Units | 36 | Average Occupancy | 97% |
| Property Type | Multifamily | No. Stories | 2 |
| Property Subtype | Apartment | Year Built/Renovated | 1979/2025 |
| Zoning | R4 - Residential | ||
| Price | $2,350,000 |
| Price Per Unit | $65,278 |
| Sale Type | Investment |
| Cap Rate | 7.02% |
| No. Units | 36 |
| Property Type | Multifamily |
| Property Subtype | Apartment |
| Apartment Style | Garden |
| Building Class | C |
| Lot Size | 5.43 AC |
| Building Size | 25,500 SF |
| Average Occupancy | 97% |
| No. Stories | 2 |
| Year Built/Renovated | 1979/2025 |
| Zoning | R4 - Residential |
Amenities
Unit Amenities
- Refrigerator
- Range
- Wheelchair Accessible (Rooms)
Site Amenities
- Laundry Facilities
Unit Mix Information
| Description | No. Units | Avg. Rent/Mo | SF |
|---|---|---|---|
| 2+1 | 36 | - | 700 - 760 |
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Somewhat walkable
30/100
Exceptionally drivable
100/100
Somewhat bikeable
30/100
Property Taxes
| Parcel Number | 600-62-71-010100-00 | Improvements Assessment | $1,400,640 |
| Land Assessment | $103,030 | Total Assessment | $1,503,670 |
Property Taxes
Parcel Number
600-62-71-010100-00
Land Assessment
$103,030
Improvements Assessment
$1,400,640
Total Assessment
$1,503,670
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Luma Terrace Apartments | 1660 E Summit St