Apartments | Garden Style
Created date: September 28, 2023
Date last updated: September 28, 2023
– Interior renovations include new luxury vinyl tile or carpet, two-tone paint, updated/replaced cabinets and counter tops, modern lighting fixtures, and replaced/ refurbished bathtubs.
– New ownership, based upon similar area rent comps, can raise rents by an average of $186 / unit
– The Luke has a fully renovated on-site office, re-striped or sealed parking, and three-tone exterior paint
– The portfolio provides a new owner with the opportunity to continue renovations and capitalize on the resilient rent growth of the Rio Grande Valley
– Similar to the Luke, The Monark has had over $645,000 on interior and exterior capital improvements
– Monark also offers walk-in closets along with upstairs balconies or downstairs patios
Portfolio Description
Waller Group is proud to present the 279-unit, value-add portfolio in McAllen, TX. The portfolio consists of two properties. (1) The Luke Apartments and (2) The Monark Apartments. The portfolio provides a new owner with the opportunity to continue renovations and capitalize on the resilient rent growth of the Rio Grande Valley. Current ownership is selling to allocate proceeds to additional projects.
Current ownership has done extensive interior renovations to 48% of the units, which has commanded a $180 / unit premium over the effective rents of the classic units. Interior renovations include new luxury vinyl tile or carpet, two-tone paint, updated/replaced cabinets and counter tops, modern lighting fixtures, and replaced/ refurbished bathtubs. Current ownership achieves a combined $1,273,792 in annual Net Operating Income (NOI). New ownership, based upon similar area rent comps, can raise rents by an average of $186 / unit, which is a $0.23 / sqft bump. With this bump in rents, new ownership can achieve an annual NOI of $1,661,045. The properties are currently managed by 1 full-time property manager, 1 full-time maintenance technician, 1 part-time maintenance technician, and 1 part-time leasing manager that floats between the two properties.
The Luke Apartments: 1200 Nolana St, McAllen, TX 78504
The Luke is a 144-unit, garden-style apartment located in the heart of north McAllen. Current ownership has renovated 58% of the units, commanding a $170 premium over effective rents. Current ownership has spent over $732,000 on interior and exterior capital improvements, including but not limited to: a fully renovated on-site office, re-striped or sealed parking, and three-tone exterior paint. Luke's apartment homes offer diverse floor plans; 61% of the units are two-bedroom or three-bedroom options. Most units offer spacious walk-in closets and an upstairs balcony or downstairs patio.
The Monark Apartments: 1600 Tamarack Ave, McAllen, TX 78501
The Monark is a 135-unit, garden-style apartment located approx. 1.5 miles from its sister property, The Luke. Ownership has renovated 38% of the units, commanding a $190 premium over effective rents. Similar to the Luke ownership, it has spent over $645,000 on interior and exterior capital improvements. The Monark offers five different floor plans; 30% of the units are two-bedroom or three-bedroom options. Monark also offers walk-in closets along with upstairs balconies or downstairs patios. McAllen suffered unprecedented storms on April 30th, 2023, which damaged 13 units at the Monark. These 13 units will either be taken to the studs or fully repaired; units will be delivered in occupied or rent-ready condition by closing.
