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Multifamily

The Palms at Dothan & Kinsey

106 Laurie Dr, Dothan, AL 36303

Listing Price: Request For Offer

Number of Units
342
Gross SF
311,920

Investment Overview

The Gulf States Office of Marcus & Millichap is pleased to present the exclusive opportunity to acquire the Palms at Dothan and Palms at Kinsey Apartments, a 342-unit value-add pairing located in Dothan, AL. The properties sit within minutes of one another and are currently finalizing a significant capital infusion, totaling $4.29mm ($12,546/unit), which has resulted in average rental increases of $286/month across 110 renovated units with premiums of up to $330/month being achieved on three bedroom units. Additionally, each clubhouse has been completely renovated and exteriors/common areas have received more than $5,000/unit in improvements, including new amenity spaces, overlaid parking lots, landscaping, signage, and exterior paint throughout. An additional $350,000 has been spent upgrading mechanical systems. The Palms’ assets are nestled within close proximity to Dothan’s major retail and employment nodes – located only minutes away from quality demand drivers such as Publix, Target, Sam’s, Walmart, Belk, Dillard’s, Dick’s, Lowe’s, and more. Southeastern Medical Center, the largest employer in Dothan, is located less than 15-minutes from the assets and other major employers such as Flowers Hospital, Perdue Farms, and Michelin Tire Manufacturing Plant account for several thousand direct jobs within a 10-mile radius of the assets. FedEx recently announced they will be building a $57mm logistics facility in Dothan which will also provide hundreds of new jobs in the immediate area. Future ownership will be well-positioned to step into a proven value-add program by continuing the current unit upgrades across the remaining 200+ classic units. By fully carrying out this value-add program across each property, future investors stand to increase annual rental collections by over $750,000, a 33%+ return on capital, assuming current rehab costs of approximately $10,000/unit.

Investment Highlights

  • Ownership is currently finalizing a significant capital infusion, totaling $4.29mm ($12,546/unit), which has resulted in with premiums of up to $330/month being achieved on three bedroom units
  • Each clubhouse has been completely renovated and exteriors/common areas have received more than $5,000/unit in improvements, including new amenity spaces, parking lots, landscaping, & signage.
  • An additional $350,000 has been spent upgrading mechanical systems.

Exclusively Listed By

Multifamily

The Palms at Dothan & Kinsey

Listing Price: Request For Offer

Number of Units
342
Gross SF
311,920

Investment Highlights

  • Ownership is currently finalizing a significant capital infusion, totaling $4.29mm ($12,546/unit), which has resulted in with premiums of up to $330/month being achieved on three bedroom units
  • Each clubhouse has been completely renovated and exteriors/common areas have received more than $5,000/unit in improvements, including new amenity spaces, parking lots, landscaping, & signage.
  • An additional $350,000 has been spent upgrading mechanical systems.

Investment Overview

The Gulf States Office of Marcus & Millichap is pleased to present the exclusive opportunity to acquire the Palms at Dothan and Palms at Kinsey Apartments, a 342-unit value-add pairing located in Dothan, AL. The properties sit within minutes of one another and are currently finalizing a significant capital infusion, totaling $4.29mm ($12,546/unit), which has resulted in average rental increases of $286/month across 110 renovated units with premiums of up to $330/month being achieved on three bedroom units. Additionally, each clubhouse has been completely renovated and exteriors/common areas have received more than $5,000/unit in improvements, including new amenity spaces, overlaid parking lots, landscaping, signage, and exterior paint throughout. An additional $350,000 has been spent upgrading mechanical systems. The Palms’ assets are nestled within close proximity to Dothan’s major retail and employment nodes – located only minutes away from quality demand drivers such as Publix, Target, Sam’s, Walmart, Belk, Dillard’s, Dick’s, Lowe’s, and more. Southeastern Medical Center, the largest employer in Dothan, is located less than 15-minutes from the assets and other major employers such as Flowers Hospital, Perdue Farms, and Michelin Tire Manufacturing Plant account for several thousand direct jobs within a 10-mile radius of the assets. FedEx recently announced they will be building a $57mm logistics facility in Dothan which will also provide hundreds of new jobs in the immediate area. Future ownership will be well-positioned to step into a proven value-add program by continuing the current unit upgrades across the remaining 200+ classic units. By fully carrying out this value-add program across each property, future investors stand to increase annual rental collections by over $750,000, a 33%+ return on capital, assuming current rehab costs of approximately $10,000/unit.

Exclusively Listed By

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