MONTEGO APARTMENTS – 18 UNITS IN DURHAM

Price:

$1,640,000

Status:

Under Contract

Address:

2006 House Ave, Durham, NC 27707, USA

Overview:

Known as the Montego Apartments, these 18 units are located one mile from Downtown Durham and Duke University. There is one studio apartment and the other 17 units are 1 BD/1 BA floorplans and 14 have renovated interiors. The building features a brick exterior and the roof was replaced in 2017. With current rents at an average of $700 per unit and in-place rents as high as $775, the buyer can realize income growth by leasing to market and renovating the last four units. Based on the trailing 12-month expenses and trailing 3-month income trend through July of 2018, the property is being offered at a 6.3% cap-rate.

The identical building at 1011 Burke Street (18 units) sold 06/2018 for $1,650,000 and the neighboring 14 units at 1901 Morehead Avenue are under contract.

The property is within steps of the Lakewood shopping center where the Scrap Exchange has initiated the redevelopment of more than 100,000 SF of dining, retail and entertainment space as a part of the Reuse Arts District. In addition, neighborhoods in the Lakewood area have seen median single-family home prices increase from approximately $100/sf to nearly $200/sf in the last seven years.

Unit Information

UnitTypeSizeLeaseRent
1STUDIO500 SFSEE RENT ROLL$650
2-181 BD/1 BA550 SFSEE RENT ROLL$700 AVG

Property Information

PIN 0821-09-15-4889 Tax Value $594,660
Taxes $8,007.09 Lot Size .635 ACRES
Year Built 1971 Exterior BRICK
Floors CARPET, VINYL, LVT Foundation SLAB
HVAC CENTRAL AIR, HEAT PUMP Owner Financing NONE
Utilities WATER IS SUB-METERED, TENANT PAYS ELECTRICITY, OWNER PAYS TRASH AND AREA LIGHTS Appliances RANGE, REFRIGERATOR, COMMON-AREA COIN LAUNDRY
Legal Description OUSE LAND/LT#08-10 PT Zoning RU-M