S College St Mountain Home, AR 72653

Property Details for S College St

Year built

1985

Lot size

2.85 lot acres

Property type

Commercial real estate

Description

College Manor Apartments, located at 124 S College St, Mountain Home, AR 72653, presents a compelling investment opportunity. This 33-unit apartment complex, situated on a 2.85-acre lot, offers a mix of unit sizes: seven 1-bedroom/1-bathroom, ten 2-bedroom/1-bathroom, and sixteen 2-bedroom/2-bathroom units, averaging 775 square feet. Originally built in 1985 with 16 units, the property underwent significant renovations in 2022, adding 17 new units, including a 560-square-foot office suite. The property currently generates a Net Operating Income (NOI) of $273,944 annually. Market analysis indicates potential for substantial NOI growth through rent increases. Without renovations to the original units, rents could increase by $200 per unit ($0.46/sq ft). Renovating the original 16 units to match the 2022 additions could yield a $400 per unit increase ($0.92/sq ft). Further revenue enhancement is possible through implementing RUBS for water and charging for trash removal. Pro forma financials were prepared using a 7% management fee. The property's location in Mountain Home, a growing community in the Ozark Mountains, benefits from a stable economy driven by healthcare (Baxter Regional Medical Center), education (Arkansas State University-Mountain Home), and tourism. The city's convenient location at the intersection of US Highways 62 and 412, along with its municipal airport, enhances accessibility. The strong demand for multifamily housing in Mountain Home, coupled with the property's proven renovation concept, positions College Manor Apartments for enhanced returns. This value-add asset offers investors a chance to capitalize on the area's growth and stable rental market. Nine buildings comprise the complex.