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Mixed-Use

Big Mill Apartments

702 N 8th St, Reading, PA 19604

Listing Price: $12,950,000

Cap Rate
5.99%
Number of Units
76
Price/Unit
$170,395
Price/Gross SF
$119.94
Gross SF
107,969

Investment Overview

Marcus & Millichap is pleased to present the Big Mill Apartments, located at 702 N 8th St, Reading, PA. The Subject Property, built in 1904, is a 6-story apartment building that has been extremely well maintained and was most recently renovated in 2017.

The subject property was completed re-built in 2015 due to a total building firing/loss event, and as a result the building was essentially re-build new from top to bottom. Every piece of material was replaced and every major mechanical was reconstructed and installed. The roof has a 20 year warranty and is Liquid Membrane Roofing Systems - which allows for an extended warranty program past the initial 20 years which currently has 15 years remaining.

The property is a true class A asset, and as a result the overall repair and maintenance budget as well as any future CapEx will be limited for the next 5-7 years.
The building features and amenities are superb, including new high-end laundry facilities, and due to its mixed-use natural the building offers a full bar and entertaining area, a full scale restaurant for tenants to enjoy, medical office space, and focused retail space. The retail space is impressive in that they consist of all original hardwood floors and clear span open spaced layout. All building features are high-end, and one of the buildings major attractions is the core pavilion area which can accommodate outdoor seating, and host events.

In 2017, the property was also honored with the Pennsylvania Historic Preservation Award. The property is ideally located within walking distance center city and major amenities. The property is also conveniently located to a number of shopping centers, malls, parks, universities, and colleges. The property features beautiful maple wood flooring and has exposed beams throughout. This densely populated area lends itself to high occupancy rates for the subject property. The rents are currently well below market, allowing a new investor significant opportunity to increase net operating income. The property has a net rentable area of 122,000 SF; with a parcel size of
0.93 Acres. It consists of 57 two (2) bedroom apartments and 12 one (1) bedroom studios the current average rent $804 per unit or 0.77 per SF due to the current rent restrictions related to the Keystone opportunity zone program and related new market and historic tax credit programs. However as of April 2021 those restrictions will sunset and rent can be drastically increases. Base on recent rent studies the average rent PSF is $1.27 however in this model of the proforma income we used $1.05 to be conservative (Which equates to a 27% purely administrative upside)
It is quite possible higher rents can be achieved in the near future as it relates to the residential cash flow. Currently there are seven (7) class A commercial spaces, and the only words to describe th



The

The building is currently 100% occupied.

Investment Highlights

  • Keystone Opportunity Zone Rent Restrictions End April 2021
  • Significant Upside Potential
  • Drastically Below Market Rents
  • Beautiful Maple Wood Flooring
  • Exposed Beams Throughout
  • 27% increase in rents in the next 1-2 years.

Exclusively Listed By

Listing Price: $12,950,000

Cap Rate
5.99%
Number of Units
76
Price/Unit
$170,395
Price/Gross SF
$119.94
Gross SF
107,969

Investment Highlights

  • Keystone Opportunity Zone Rent Restrictions End April 2021
  • Significant Upside Potential
  • Drastically Below Market Rents
  • Beautiful Maple Wood Flooring
  • Exposed Beams Throughout
  • 27% increase in rents in the next 1-2 years.

Investment Overview

Marcus & Millichap is pleased to present the Big Mill Apartments, located at 702 N 8th St, Reading, PA. The Subject Property, built in 1904, is a 6-story apartment building that has been extremely well maintained and was most recently renovated in 2017.

The subject property was completed re-built in 2015 due to a total building firing/loss event, and as a result the building was essentially re-build new from top to bottom. Every piece of material was replaced and every major mechanical was reconstructed and installed. The roof has a 20 year warranty and is Liquid Membrane Roofing Systems - which allows for an extended warranty program past the initial 20 years which currently has 15 years remaining.

The property is a true class A asset, and as a result the overall repair and maintenance budget as well as any future CapEx will be limited for the next 5-7 years.
The building features and amenities are superb, including new high-end laundry facilities, and due to its mixed-use natural the building offers a full bar and entertaining area, a full scale restaurant for tenants to enjoy, medical office space, and focused retail space. The retail space is impressive in that they consist of all original hardwood floors and clear span open spaced layout. All building features are high-end, and one of the buildings major attractions is the core pavilion area which can accommodate outdoor seating, and host events.

In 2017, the property was also honored with the Pennsylvania Historic Preservation Award. The property is ideally located within walking distance center city and major amenities. The property is also conveniently located to a number of shopping centers, malls, parks, universities, and colleges. The property features beautiful maple wood flooring and has exposed beams throughout. This densely populated area lends itself to high occupancy rates for the subject property. The rents are currently well below market, allowing a new investor significant opportunity to increase net operating income. The property has a net rentable area of 122,000 SF; with a parcel size of
0.93 Acres. It consists of 57 two (2) bedroom apartments and 12 one (1) bedroom studios the current average rent $804 per unit or 0.77 per SF due to the current rent restrictions related to the Keystone opportunity zone program and related new market and historic tax credit programs. However as of April 2021 those restrictions will sunset and rent can be drastically increases. Base on recent rent studies the average rent PSF is $1.27 however in this model of the proforma income we used $1.05 to be conservative (Which equates to a 27% purely administrative upside)
It is quite possible higher rents can be achieved in the near future as it relates to the residential cash flow. Currently there are seven (7) class A commercial spaces, and the only words to describe th



The

The building is currently 100% occupied.

Exclusively Listed By

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