3119 Tom Green St
Austin, TX 78705
Multifamily Property For Sale · 8 Units

Superb location, mere steps from UT, this 8 Unit North UT Campus apartment building is situated on a large MF-4 lot with fantastic income potential. May build 12 Unit complex, if desired, remodel current units or keep "as is". Building is in good condition with 100% occupancy. Though complex is near UT's Engineering & Law Schools, it attracts tenants from many majors, both undergrad and graduate students. An easy walk to iconic Posse East and Crown & Anchor. Highly desirable UT property. There is no deferred maintenance on the property. Everything is up to date, in working order and well taken care of. We are always 100% occupied. The property has an MF4 zoning designation, which is not easy to obtain. This means the property is zoned to contain up to 12 units (it has 8 units now) and could be redeveloped. Further details about this would need to be obtained from the City of Austin. It is notable that 75% of the occupants are long-term tenants, so there is an opportunity at next lease expiration after purchase to have significant rent increases across the board. Current rent on our efficiencies average $2.11 sq/ft, while market average for UT area is $2.40 sq/ft. For the 2 bedrooms, our average is $1.57/sq ft and UT area average is $1.75/sq ft. The number of buildings in the area has been steady at approximately 450 for the last 5 years; this in the face of a five-year average of 123-month deliveries of over 200,000 square feet. The conclusion to be drawn from these numbers is that properties are being assembled and redeveloped with higher densities. The annual sales price per unit for the area is at an all-time high, with the CBD and UT submarkets enjoying highest levels of over $300,000 per unit for Class A product.  This property is considered Class B. Occupancy levels for the UT submarket Class B and Class C properties are at 100.00% and 99.14% respectively. This elevated level of occupancy for these units in this submarket is not unusual. For our property, the UT submarket is performing especially well selling at among the highest prices per unit of any submarket including the CBD.  Operating expenses were a bit high in 2018 due to removal of several trees and updating the interior of several units. Through research, discovered we are a little low on rental rates for the units. New owner can easily rectify that at next lease expiration, which we would do if retaining this asset, and in so doing tighten up the P&L.