Apple Terrace and Mount Bailey Apartments are each 12-unit buildings adjacent to each fronting on E. Mt Hope Ave at Bailey St & Lyons Ave. The property consists of 2 buildings with each having one 650 sq.ft. one-bedroom and eleven 850 sq.ft. two-bedroom units.
As it pertains to market rents, our carefeully conducted rent comparable study has revealed they are below market by over $55 (one-bedroom) and $114 (two-bedroom) per unit based on the Street Rent. From an underwriting perspective, IPO has conservatively forecasted a year one Pro Forma NOI of $108.73 based on current street rents and a vacancy factor that is consistent with current trends When a modest increase in rents and implementation of the utility charge is included, the NOI rises considerably, creating a significant amount of value add potential without significant additional financial investment.