MONTEGO APARTMENTS – 18 UNITS IN DURHAM

SOLD 11/21/18 FOR $1,500,000

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.