High cap rate multifamily located next to NM Tech and School of Mines

Multi-Family for Sale
Catylist Listing ID: 30795177
Property Subtypes: Low-Rise/Garden
Number of Units: 32 Units
Building Size (RSF): 12,800 SF
Gross Land Area: 0.60 SF
Sale Price: $1,300,180
Unit Price: $40,630.62 Per Unit
Property Use Type: Investment
Usable Size (USF): 12,800 SF
Sale Terms: Cash to Seller
Cap Rate: Undisclosed
Gross Rent Multiplier: 11.29
Last Updated: 5/16/2022

Overview / Comments

Good morning!

NM Apartment Advisors is excited to bring to market a high cap rate, value add opportunity in Socorro New Mexico. Located across the street from NM Tech and School of Mines, which is one of the nation’s top STEM universities, known for its science and engineering programs and for operating the Very Large Array (VLA).

This 16 unit community is surrounded by housing for NM Tech and school of Mines and is walking distance to the center of campus as well as all of the retail opportunities on Main Street Socorro. Located at 501-533 Bullock street, in Socorro NM, which is an hour drive south of Albuquerque and 2 hours north of Las Cruces. The property has built in, no cost adjacent amenities in the form of City swimming pool, parks, ball fields and tennis course.

Owned by the same family for decades, this 16-unit community was built in the 1970s. The property contains four, four unit buildings that are each two story with pitched roofs, all on one 0.60 acre parcel of land.

Based on the current average rents of $600 per month, the property’s measures of investment performance include a 11.29 GRM, 6.06% cap rate before reserves, before tax IRR of 17.00% and an after tax IRR of 13.50%.

The current owner has recently done the non-sexy upgrades to heaters (2019), air conditioners (2021) and roof replacements (2021), leaving the color, texture and surface upgrades that allow a refreshed unit to pop and engage residents to pay a substantially higher rent.

This project represents an excellent opportunity for the next owner to continue to operate on an As-Is basis, or to generate substantially higher returns with an interior refresh.

Similar unit in the area rent for $850 to $1,065 and remember, many university student’s roommate up so these rents are very affordable with a lot of room to improve.

If rents were raised to the market rents of $850, the measures of investment performance improve to a 8.19% cap rate, and 15.35% cash on cash.

Additional value add opportunities include adding high speed Internet and private yard spaces which could increase the overall value of the community by a substantial multiplier over the cost.

One of our own personal investment goals is to invest in an area that someone is spending a lot more money than we ever could improving the area. If you follow that maximum, this property fits as the city is working on a a $4,000,000 improvement to the Bullock Blvd. streetscape that includes new roadways, side walks, curbs, landscaping and overhead catenary lighting.

Owner prefers not to disturb residents and encourages offers subject to inspections.

Flyer, APOD, and property info at http://www.nmapartment.com/apt/NMAA-Bullock501Socorro.pdf

Do not miss out on this rare opportunity for a value add asset in a strong rental market.

Thanks,
Todd Clarke CCIM CIPs
CEO
NM Apartment Advisors Inc.
(505) 440-TODD

Additional Details

Nearest MSA: Albuquerque
County: Socorro
Taxing Authority: Socorro
Total Number of Buildings: 4
Property Condition: Good
Number of Stories: 2
Roof Type: Gable

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 3,708 5,745 7,839
Median Age: 29.91 31.46 33.56
Households: 1,518 2,322 3,173

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