Investment Overview

Marcus & Millichap is pleased to present the Cole Street Apartments, a 33-unit multifamily property in Muncie, Indiana. The property is located just north of the White River and less than a mile south from Ball State University’s campus. The property recently underwent extensive renovations and is stabilized with further upside due to in-place rents being below market. Over $830,000 was spent on Capital Improvements at the Cole Street Apartments over the past couple of years. These renovations include all new appliances, renovated kitchens & bathrooms, new light fixtures, new drywall, trim, & paint, new exterior doors, new electronic locks, new vinyl plank flooring, new roofs, all new water heaters, new signage, parking lot resurfacing, laundry room renovations, new mailboxes, and over $40,000 in electrical upgrades. Cole Street Apartments now offers attractive units with high-quality finishes and more affordable top-line rent. The property consists of 32 1-bed /1-bath units and a single 2-bed/1-bath unit. The units are quite small; 300 square feet for the 1-bedrooms and 625 square feet for the single 2-bedroom. However, what this allows is for newly renovated units to be leased at a very high rent per square foot while still remaining very affordable in an absolute rental amount. The current in-place average rent for the 1-bedroom units is only $655! This is substantially below the typical rent for a renovated 1-bedroom unit, which can be as high as $900-$1,000+. Furthermore, several units have already been leased for $715/month, demonstrating the potential to raise rents by over 9% on average. The Cole Street Apartments provides the prospective investor with the opportunity to acquire newly-renovated units with affordable rents and income growth potential. The property is in excellent condition after the expansive scope of recently completed rehab, and the renovated units have the lowest total asking rent in the entire Muncie residential market.