Courtyard Apartments

Description:

Courtyard Apartments is a 48 unit, two-story brick construction building located in Amarillo, TX.  The current owner has owned the building for over 15 years and pride of ownership is apparent.  Recent cap ex includes newer windows, exterior paint, and approximately 1/3 of the units have updated kitchen cabinets.    


Amarillo, TX is located in the panhandle part of Texas along I40, about halfway between Oklahoma City and Albuquerque. The population of Amarillo is close to 200,000 and top employers include Tyson Foods, Pantex, Bell Helicopter, Xcel Energy, two large hospitals: BSA and Northwest Texas Health System, and a new 1m sf Amazon Fullfillment Center. The apartments are located off of I27 along Western and 45th St - two major throughrofares through the city.  


The demographics in the area and the rent comps support higher rents.  This is a well taken care of property and priced competitively within the market.  New owner could implement RUBS and start billing back for water.  Another value add strategy is a water conservation program that would lower the water bill and increase NOI.  One of the one bedroom units is currently being used as an office and could be converted to a rentable unit for off-site management.  It's currently 47 rentable units.   

 


Projected 5 Year Levered IRR    23.2%
Projected 5 Year Equity Multiple    2.7
Projected Value Add IRR    29.2%
Project Value Add Increase in Annual Cash Flow    $47,662
Projected Value Add    $867,000

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