Governors Parc Apartments

Highlights:

• 228 total units
• Heavily renovated asset (over $6.5M total capex - nearly $30k/unit) with all new exteriors, roofs, stairways, mechanicals, electric, plumbing, windows, parking lot, etc.
• 60%+ renovated unit interiors
• 93%+ occupancy
• Year One offers a high 7% cap rate, with a clear pathway to achieving a fully stabilized 9% cap rate and double digit yields by Year Two
• Average rent premium available: $70/unit
• The subject property sits next door to Baptist Medical Center Hospital and down the road from Alabama State University. The renovated community is perfectly suited to attract travel nurses, hospital staff and students, in addition to other resident profiles.
• Strategic location, just off Hwy 80, providing residents with convenient access to primary retail & employment centers in Montgomery. Starbuck’s TJ Maxx, Home Depot all within 2.5 miles of the subject property
• 10-minute drive from the Hyundai Manufacturing Plant under 3 miles from major grocery options like, Fresh Market, Publix, Aldi, & Walmart

Description:

Matthews Real Estate Investment Services is pleased to present the opportunity to acquire Governor’s Parc, a newly renovated apartment community in Montgomery, AL. This 228-unit asset has been extensively rehabbed under current ownership and offers the next investor immediate scale in the market, at an attractive basis. Over $6.5M in capex has been allocated in the past 24 months.

Governor’s Parc boasts brand new roofs, windows, sliding glass doors, mechanical systems, parking lot, exterior paint job, and landscaping. Additionally, the onsite office has been renovated and nearly 2/3 of unit interiors have been fully renovated. The remaining units are in good, leasable condition. The property consists of a mix of 1, 2, & 3-bedroom apartments, with over two-thirds of the units being 2 and 3-bed units. Average leased rents are currently $765, which is $70 below the prevailing market rate, presenting new ownership healthy organic rent growth potential upon lease renewals.

This property is strategically located near a variety of notable employers, like the adjacent Baptist Medical Center Hospital, Alabama State University, Hyundai Manufacturing Plant, and an abundance of jobs connected to the State Capital in downtown Montgomery. The newly renovated community is an ideal destination for nurses & hospital staff, students & faculty, and employees of the nearby government and manufacturing industries. The property also sits within a mile of several grocery and retail options. Fresh Market, Publix, Aldi, & Walmart Super Center are all within 3-miles of Governor’s Parc. Further, a variety of retail and dining options, such as Starbucks & Home Depot are within minutes.

In addition to the built-in resident base, the property benefits from exceptional connectivity. Situated north of Hwy 80, Governor’s Parc provides convenient access to major interstate I-65, which accommodates over ±250,000 vehicles per day. This prime location ensures easy commutes and travel for residents, further increasing the desirability of the community.

The combination of a convenient location and a newly renovated asset, present an attractive investment opportunity for investors seeking to enter the Montgomery market with immediate scale or grow their existing presence.

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