Multifamily
Galesburg Townhomes
65 Locust St, Galesburg, IL 61401
Listing Price: $1,300,000
Investment Overview
Galesburg Townhomes offers investors the opportunity to acquire a 24-unit townhome community at a compelling basis of $54,167 per unit ($49.24 per square foot), positioning the asset favorably relative to recent comparable sales in the region. The property is comprised of six buildings totaling 26,400 rentable square feet, with an even mix of spacious two- and three-bedroom units averaging 1,100 square feet. This larger floorplan format continues to perform well in the Galesburg market, appealing to both families and long-term renters seeking additional living space.
Current average rents of $814 sit roughly $100 below the projected average of $916, presenting a straightforward path to revenue growth through continued rent adjustments and operational efficiencies. Investors are able to step into an asset generating an 7.78% going-in cap rate and 6.03% cash-on-cash return, with the opportunity to increase performance to an 8.62% pro forma cap rate and 9.39% cash-on-cash return as rents are brought to market levels.
Listing Price: $1,300,000
Investment Highlights
- Below Market Rents: $100 Per unit Mark-to-Market Opportunity
- Strong In-Place Yield: 7.78% Going-In Cap Rate
- Attractive Basis: $54,167 Per Unit
- Desirable Townhome Layouts: 50% Two Bedroom | 50% Three Bedroom
Investment Overview
Galesburg Townhomes offers investors the opportunity to acquire a 24-unit townhome community at a compelling basis of $54,167 per unit ($49.24 per square foot), positioning the asset favorably relative to recent comparable sales in the region. The property is comprised of six buildings totaling 26,400 rentable square feet, with an even mix of spacious two- and three-bedroom units averaging 1,100 square feet. This larger floorplan format continues to perform well in the Galesburg market, appealing to both families and long-term renters seeking additional living space. Current average rents of $814 sit roughly $100 below the projected average of $916, presenting a straightforward path to revenue growth through continued rent adjustments and operational efficiencies. Investors are able to step into an asset generating an 7.78% going-in cap rate and 6.03% cash-on-cash return, with the opportunity to increase performance to an 8.62% pro forma cap rate and 9.39% cash-on-cash return as rents are brought to market levels.
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