Vista Ridge Apartments: 7.88% Cap Rate

Multi-Family for Sale
Catylist Listing ID: 30051738
Property Subtypes: Low-Rise/Garden
Number of Units: 42 Units
Building Size (RSF): 35,000 SF
Gross Land Area: 10 Acres
Sale Price: $1,800,000
Unit Price: $42,857.14 Per Unit
Property Use Type: Investment
Building Name: Vista Ridge Community Apartments
Usable Size (USF): 35,000 SF
Sale Terms: Undisclosed, Cash to Seller
Cap Rate: Undisclosed
Average Occupancy Rate: 95
Last Updated: 9/10/2018

Overview / Comments

THERE WILL BE A CALL FOR OFFERS FOR THIS PROPERTY ON MONDAY, OCTOBER 1ST, 2018!

Vista Ridge Community Apartment complex is a 42 unit complex located in the East Ridge submarket and is nestled up to the side of Missionary Ridge, just off of Seminole Drive. There are 5 buildings on the property. There are 3 buildings which contain 39 2-bedroom, 1-bath units and 1 1-bedroom, 1-bath unit. There is also an A-frame house with 1-bedroom and 1-bath and the second home is a large 3-bedroom, 3-bath home. This is located at the top of the property and is counted as 2 apartments.

Vista Ridge has had a very high occupancy rate which typically is about 95%. Currently they are 100% full! About half of the units had rent increases as of September 1, 2018. This will add about $3,360/year or over $42,000 in value. Typical rents range from $575-$600 per month.

The Seller put new roofs on the 3 buildings which contain the 39 units in 2014 & 2015. They have also installed a water sub-metering system on the hot water units. The sub-metering generates about $26,000 per year in income and covers about two thirds of the municipal water bill.

At List Price the Cap Rate is 7.88% calculated from the 7 months of 2018. The 2018 gross income is up 6.20% over 2016. The 2018 operating costs are down 8.11% form 2016. Overall, Net Operating Income (NOI) Profit is up $31,196 over 2016 or is up 28.2%. There has been significant improvement in the management and control of this property in the last 12 to 18 months.

Square footage is estimated.

Reports Available upon Request with Serious Interests:
Property Brochure
Vista Ridge tax Card
2016-2018 P&L's
Current Rent Roll
REIS Chattanooga Multifamily 2nd Quarter Report (44 Pages)
Costar Sales Comps Report

Attachments & Media

Additional Details

Nearest MSA: Chattanooga
County: Hamilton
Taxing Authority: Hamilton County
Tax ID/APN: 168C E 018
Zoning: R3
Percent Occupied: 100%
Property Located Between: Just off South Seminole Drive
Highway Access: Quick access to I-24 via Ringgold Road.
Airports: Chattanooga Metropolitan
Site Description: The 10 acre site is just off South Seminole Drive along the side of MIssionary Ridge south of the East Ridge Tunnels. There are 3 1-story apartment buildings with two residential homes.
Area Description: The apartments are located in the City of East Ridge which is small city surrounded by Chattanooga.
Total Number of Buildings: 5
Property Condition: Average
Number of Stories: 1
Year Built: 1964
Year Renovated: 1980
Roof Type: Flat
Parking Type: Surface
Parking Description: The parking is directly in front of the apartments and buildings.
Laundry: In Each Unit
Sprinklers: None
Heat Type: Electricity
Heat Source: Central
Fuel: Electric
Air Conditioning: Package Unit
Interior Description: 39 units are 2 bedroom and 1 bath 1 units is a 1 bedroom and 1 bath 1 house with 3 bedrooms and 3 baths
Zoning Description: R3- Multifamily
Lot Frontage: 50
Lot Depth: 600
Water Service: Municipal
Sewer Type: Municipal
Land Ownership: Owned
Legal Description: Nw Sec 1 Twp 3 R-4 Bimini Apts 39

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 13,330 87,968 144,158
Median Age: 35.25 36.15 36.88
Households: 5,509 35,126 59,183

Contact

Photograph of Listing Agent

Robert Fisher

KW Commercial Greater Chattanooga REALTORS® Member
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