Polk Terrace Apartments 338 N 23rd St 30 Unit Apartment Building $4,050,000 ($135,000/Unit) 6.76% Cap Rate Phoenix, AZ 85006

Polk Terrace is a 30-unit apartment community located in the heart of Central Phoenix. The property was constructed in 1985 of wood frame with a stucco exterior, has pitched roofs, and is individually metered for electricity. The property offers a well-balanced unit mix consisting of 18 one bedroom units and 12 two bedroom units with each unit having its own storage room just outside the unit. The property is gated, has a leasing office, a detached maintenance room, and offers multiple laundry rooms on-site. The property has no pool and low-maintenance desert landscaping.

Current ownership has owned and self-managed the property since 2015 and has kept the property consistently at high occupancy at below market rents with long-term tenants that are on month-to-month leases. The units are in classic condition and new ownership has the tremendous opportunity and immediate flexibility to significantly bump rental rates by updating the unit interiors and adding washer/dryer in unit. Furthermore, the two building layouts allow for the addition of large back patios on the 16 ground floor units. By upgrading units, adding washer/dryer, and patios, rental rates could be increased between $150-$250 above existing rental rates.

Polk Terrace represents a value-add opportunity attractively priced at $135,000 per unit.