The just-won opportunity is Wheatland Terrace at 417 W. Wheatland Rd. It's one of largest multifamily sites in its neighborhood, but it also has roughly half of its 23 buildings shuttered. The 19.4-acre complex, spanning both sides of Wheatland Road, was sold by a nonprofit organization that had held it nearly a decade.
"When the market tanked, it could never bounce back," John Barker, senior associate and national multi-housing director for Marcus & Millichap Real Estate Investment Services, tells GlobeSt.com. The all-cash buyer, who specializes in distressed properties, could realize a 35% to 40% increase in revenue post renovation, he adds. The seller had completed renovations on 75 units.
Barker and Marcus & Millichap associate Will Jarnagin spent one year marketing the 37-year-old Wheatland Terrace. The $4.4-million listing drew 30 offers, with one contract loss on the road to the close. "It was one of the toughest ones I've had in a few years," he says. "But, this buyer was in escrow only 90 days."
Barker says the new owner has already filed with HUD to ante up rents as part of her repositioning plan. The buyer's turnaround MO has been to fix, hold for a few years and then sell.
The Wheatland Terrace has one-, two- and three-bedroom units in 584-sf to 1,024-sf layouts. Rents are $510 to $800 per month.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.