Capitol City Villa

Description:

Capitol City Villa: Core Multifamily Investment in Lincoln's Dynamic Near South District Capitol City Villa represents a stabilized multifamily asset with significant value-add upside in one of Lincoln's most strategically positioned neighborhoods. The property comprises 68 units (53 one-bedroom/one-bathroom, 14 two-bedroom/one-bathroom, plus one detached rental home) totaling 45,003 rentable square feet across a 1.56-acre site. Built in 1963, the property has undergone selective modernization with 72 units in active renovation cycles, positioning the asset to capitalize on Lincoln's sustained demand for updated multifamily housing. The combination of core location, strong demographic support, and planned capital improvements creates compelling opportunities for investors seeking rent growth and portfolio stability in a regional Nebraska market experiencing limited new supply.

Recent Financial Performance

Annualized Net Operating Income: $303,497 (based on last 3 months)

The property demonstrates a remarkable 137.8% increase in NOI compared to earlier operational periods, driven by strategic expense management and revenue optimization. The last three months of operations (November 2025 - January 2026) represent stabilized, repeatable performance with:


Average monthly NOI of $25,291
Gross operating income of $683,258 annualized
Operating expense ratio of 55.6% (industry-competitive)
Consistent monthly performance demonstrating operational stability


Operational Excellence

The property has successfully transitioned through lease-up and initial stabilization phases, now operating with:


Reduced Administrative Costs: CAM expenses reduced from $21,052 to $13,765 monthly, representing $87,444 in annual savings
Revenue Growth: 2.8% income growth with reduced concessions and stabilized occupancy
Efficient Operations: 29.2% reduction in total operating expenses year-over-year



The subject property benefits from proximity to the University of Nebraska-Lincoln campus, the Nebraska State Capitol complex, and robust employment centers, capturing demand from university staff, state employees, and service workers. With 97% occupancy and rents below recent Lincoln market comparable sales, the property presents clear rent-growth trajectory aligned with market fundamentals.


Built in 1963, the property has undergone selective modernization with 32 units in active renovation cycles, positioning the asset to capitalize on Lincoln's sustained demand for updated multifamily housing. The combination of core location, strong demographic support, and planned capital improvements creates compelling opportunities for investors seeking rent growth and portfolio stability in a regional Nebraska market experiencing limited new supply.

Recent Financial Performance

Annualized Net Operating Income: $303,497 (based on last 3 months)

The property demonstrates a remarkable 137.8% increase in NOI compared to earlier operational periods, driven by strategic expense management and revenue optimization. The last three months of operations (November 2025 - January 2026) represent stabilized, repeatable performance with:


Average monthly NOI of $25,291
Gross operating income of $683,258 annualized
Operating expense ratio of 55.6% (industry-competitive)
Consistent monthly performance demonstrating operational stability


Operational Excellence

The property has successfully transitioned through lease-up and initial stabilization phases, now operating with:


Reduced Administrative Costs: CAM expenses reduced from $21,052 to $13,765 monthly, representing $87,444 in annual savings
Revenue Growth: 2.8% income growth with reduced concessions and stabilized occupancy
Efficient Operations: 29.2% reduction in total operating expenses year-over-year