$2.9M Gets 23-Unit Cypress Complex

Steven Brombal of Hendricks & Partners, who represented the buyer, tells GlobeSt.com that the buyer has already realized upside potential by renting a vacant one-bedroom unit for $995, compared with rents of $775 to $900 for the other one-bedroom apartments in the complex.

Brombal says the two-story wood frame and stucco property, built in 1972, includes eight spacious one-bedroom units with large private yards and walk-in closets and walk-in pantries; 11 two-bedroom, one-bath units; three with two bedrooms and two baths, and one three-bedroom with three baths. The one-bedroom units total about 700 sf, the twos about 1,100, and the three-bedroom 1,400 sf.

Brombal tells GlobeSt.com the building is in excellent condition, having been well maintained by the seller, who had owned the property since 1991. Ten of the units have been remodeled and equipped with new appliances. Rents range from $1,000 to $1,100 for the two-bedroom apartments and the three-bedroom unit is $1,250.

Brombal estimates the $126,761 per unit purchase price was $10,000 to $15,000 per unit below what the complex might have sold for because it is in an excellent location in a neighborhood of single-family homes, but he says it was not aggressively marketed.

"I am confident that the seller could have easily received multiple offers in the $137,500 to 140,000 per unit range," he tells GlobeSt.com. He says the building has considerable up-side potential because, says, the apartments will rent for considerably more as they become vacant.

"The re-rent of the one-bedroom, one-bath unit for $995 attests to the fact that there is real upside in the rents," he tells GlobeSt.com. He estimates the two-bedroom units will rent for up to $200 more per unit and the three-bedroom could go for nearly $250 more.