Southernwood 592 Patterson St 23 Unit Apartment Building $2,150,000 ($93,478/Unit) Memphis, TN 38111
EXECUTIVE SUMMARY
Walkable to the University of Memphis campus - if you lived any closer you would have to enroll!
23 units with a laundry facility. Intentional heavy turnover of tenants in 2023-2024 for apartment improvements. Floors and countertops have been replaced as needed along with other work to take the apartments to the next level. The property has been stabilized with tons of upside remaining for further improvements. The best of both worlds!
Average current rents for 2-bedroom one bath apartments are $906/month with surrounding market comps showing an average of $1,050/month with highs of $1,295 per month for 2-bedroom townhomes. Student housing on campus rent for an average of $750-850 per room.
The offering includes 3 parcels, including two improved parcels and one vacant parcel with improved surface parking. The seller suggests that there is room for more apartments to be built on the extra parcel.
Recovery on the horizon: President Jonathan Gray, of BREIT, says Blackstone is positioning for a rebound and focusing on rental housing, especially student housing. Wesley LePatner, who will take over as CEO of BREIT in January, highlighted the “structural undersupply” of student housing in the US, positioning it as a resilient asset class.
The student housing industry wrapped up a stellar leasing season with more than half of the Yardi 200 schools achieving at least 95% occupancy. Rent growth has averaged 5.8% during the leasing season.
23 units with a laundry facility. Intentional heavy turnover of tenants in 2023-2024 for apartment improvements. Floors and countertops have been replaced as needed along with other work to take the apartments to the next level. The property has been stabilized with tons of upside remaining for further improvements. The best of both worlds!
Average current rents for 2-bedroom one bath apartments are $906/month with surrounding market comps showing an average of $1,050/month with highs of $1,295 per month for 2-bedroom townhomes. Student housing on campus rent for an average of $750-850 per room.
The offering includes 3 parcels, including two improved parcels and one vacant parcel with improved surface parking. The seller suggests that there is room for more apartments to be built on the extra parcel.
Recovery on the horizon: President Jonathan Gray, of BREIT, says Blackstone is positioning for a rebound and focusing on rental housing, especially student housing. Wesley LePatner, who will take over as CEO of BREIT in January, highlighted the “structural undersupply” of student housing in the US, positioning it as a resilient asset class.
The student housing industry wrapped up a stellar leasing season with more than half of the Yardi 200 schools achieving at least 95% occupancy. Rent growth has averaged 5.8% during the leasing season.
DATA ROOM Click Here to Access
- Offering Memorandum
PROPERTY FACTS
| Price | $2,150,000 |
| Price Per Unit | $93,478 |
| Sale Type | Investment |
| No. Units | 23 |
| Property Type | Multifamily |
| Property Subtype | Apartment |
| Apartment Style | Low-Rise |
| Building Class | C |
| Lot Size | 0.31 AC |
| Building Size | 7,772 SF |
| Average Occupancy | 100% |
| No. Stories | 2 |
| Year Built/Renovated | 1965/2023 |
| Parking Ratio | 1.93/1,000 SF |
| Opportunity Zone |
Yes |
| Zoning | RU-3 |
AMENITIES
UNIT AMENITIES
- Air Conditioning
- Cable Ready
- Disposal
- Kitchen
- Refrigerator
- Oven
- Range
- Tub/Shower
SITE AMENITIES
- Trash Pickup - Curbside
UNIT MIX INFORMATION
| DESCRIPTION | NO. UNITS | AVG. RENT/MO | SF |
|---|---|---|---|
| 1+1 | 8 | - | 785 |
| 2+1 | 14 | - | 850 |
| 2+1.5 | 1 | - | 1,085 |
1 of 1
Bike Score®
Very Bikeable (70)
PROPERTY TAXES
| Parcel Numbers | Improvements Assessment | $46,780 | |
| Land Assessment | $23,050 | Total Assessment | $69,830 |
