Marcus & Millichap, as exclusive listing agent, is pleased to bring to market a very rare and unique opportunity to acquire Pilgrim Apartments, one of the few remaining waterfront apartment communities located east of Bayview Drive in the highly desirable Coral Ridge Country Club Estates neighborhood of East Fort Lauderdale. Pilgrim Apartments has been owned by the same family who resides outside of the United States for almost 40 years and offers a tremendous value add opportunity. With residents going back as far as 20+ years, most apartments are in close to their original condition providing significant rental upside through interior renovations as well as exterior enhancements. Pilgrim Apartments is a two-story, 33-unit concrete block building that was constructed in 1961 and is situated on a 30,030 square foot waterfront site with 300 feet of frontage on a deep-water canal just off of the Intercoastal Waterway. The site is zoned RMM-25 and there are no fixed bridges to access the Atlantic Ocean. The property offers a very unique unit mix of 17 large efficiency apartments and 16 large one-bedroom apartments. All apartments face the water and have spectacular views. Efficiencies have one wall air-con-ditioning unit and one-bedroom apartments have an additional unit in the bedroom. Each apartment has a separate electric hot-water heater and its own electric meter. Residents are responsible for electricity, cable and telephone, while water, sewer and trash removal are included in the monthly rent. The building exterior was recently painted, new brick pavers were installed around the pool, patio area and walkways, and 6 efficiency apartments have been renovated with new flooring, kitchens and bathroom.
Property amenities include a gated waterfront swimming pool and large outdoor patio area, as well as an onsite laundry room with two washers and three dryers. There is boat dockage that runs along the rear of the property and is rented for additional income, although there is additional water frontage to add more docks. The property has 34 open parking spaces and there is also public street parking.
Due to minimal resident turnover and mostly dated apartment interiors, the current in-place rents average only just over $1,000. In one of the strongest rental markets in the nation, Pilgrim Apartments offers investors a true value add opportunity. There is minimal rental competition and the few comparable properties are averaging upwards of $1,500 per month in rent. There is a very strong demand for smaller apartments for individuals that do not need a lot of space. With interior renovations, we are projecting a 30 percent+ increase in average rent. Including the potential for additional boat dockage, more hands-on management and the strong rental market, Pilgrim Apartments should produce excellent returns over time. Furthermore, there may be future development potential or a possibility for operating short-term rentals. Fort Lauderdale Beach and Galt Ocean Mile are within walking distance and downtown Fort Lauderdale is just 32 blocks to the south.
