Multifamily

The Tower

Listing Price: $2,900,000

Cap Rate
6.99%
Number of Units
41
Price/Unit
$70,732
Price/Gross SF
$118.68
Gross SF
24,435

Investment Overview

Marcus & Millichap is pleased to present The Tower, a 41-unit mixed-use high-rise in downtown Anderson, Indiana. The Tower is primarily a residential property, as 40 of the 41 units are multifamily apartments. Having undergone a complete rehabilitation in 2019, The Tower provides the prospective investor an opportunity to acquire a property with little to no deferred maintenance with additional value-add opportunity.

The 40 residential units are split between thirty-seven 1-bed / 1-bath and three 2-bed / 2-bath units. The Tower first leased up at the end of 2019 and shot up to 100% occupancy faster than expected. This suggests there was pent-up demand for apartments with interior class-A finishes in downtown Anderson, and the initial rents were likely under-market. New leases and renewals have been signed at rates $15/month higher than the initial leases without any challenge, providing a proof of concept for obtaining higher rents.

The 41st unit is a first-floor street-facing office or retail unit which is approximately 2,800 square feet. At a very conservative $10/sq.ft./year, this unit presents the opportunity to increase revenues by $28,000 annually. Between raising residential rents and leasing the commercial space, there is ample opportunity for a new owner to significantly increase cash-flow and value. Considering expected future maintenance and expenses are low as a result of the recent rehabilitation, a substantial portion of any increased revenues are likely to directly increase a new owners bottom line.


Investment Highlights

  • 41 unit high-rise tower in downtown Anderson, IN
  • Complete rehabilitation to class-A finishes
  • Little to zero deferred maintenance

Exclusively Listed By

Listing Price: $2,900,000

Cap Rate
6.99%
Number of Units
41
Price/Unit
$70,732
Price/Gross SF
$118.68
Gross SF
24,435

Investment Highlights

  • 41 unit high-rise tower in downtown Anderson, IN
  • Complete rehabilitation to class-A finishes
  • Little to zero deferred maintenance

Investment Overview

Marcus & Millichap is pleased to present The Tower, a 41-unit mixed-use high-rise in downtown Anderson, Indiana. The Tower is primarily a residential property, as 40 of the 41 units are multifamily apartments. Having undergone a complete rehabilitation in 2019, The Tower provides the prospective investor an opportunity to acquire a property with little to no deferred maintenance with additional value-add opportunity.

The 40 residential units are split between thirty-seven 1-bed / 1-bath and three 2-bed / 2-bath units. The Tower first leased up at the end of 2019 and shot up to 100% occupancy faster than expected. This suggests there was pent-up demand for apartments with interior class-A finishes in downtown Anderson, and the initial rents were likely under-market. New leases and renewals have been signed at rates $15/month higher than the initial leases without any challenge, providing a proof of concept for obtaining higher rents.

The 41st unit is a first-floor street-facing office or retail unit which is approximately 2,800 square feet. At a very conservative $10/sq.ft./year, this unit presents the opportunity to increase revenues by $28,000 annually. Between raising residential rents and leasing the commercial space, there is ample opportunity for a new owner to significantly increase cash-flow and value. Considering expected future maintenance and expenses are low as a result of the recent rehabilitation, a substantial portion of any increased revenues are likely to directly increase a new owners bottom line.


Exclusively Listed By

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