429 Johnson St Longview, TX 75602

Property Details for 429 Johnson St

Property size

16,488 SF

Property type

Commercial real estate

Description

This 24-unit apartment building, located at 429 Johnson St in Longview, Texas, presents a compelling investment opportunity. The property boasts 16,488 square feet and is currently listed at $1,175,000, translating to $71.26 per square foot and $48,958.33 per unit. Extensive renovations totaling over $400,000 have been completed, encompassing both interior and exterior improvements. Interior upgrades include new kitchen cabinets (in most units), granite countertops, stainless steel appliances, updated fixtures, moldings, and flooring. Exterior enhancements feature fresh paint, new wood accents, window replacements, fencing, and the replacement of approximately 50% of the AC units. Two new roofs were also installed at a cost of $30,000. A renovated on-site laundry facility with pay-to-use machines adds further value. The property benefits from its proximity to highly-rated Hudson Elementary School (within 2 miles) and major transportation arteries (I-20, Hwy 289, Hwy 80, all within 3 miles). Current annual net operating income (NOI) is $80,311, representing a 6.56% cap rate. However, potential exists to significantly increase NOI through rent increases (up to $102 per unit based on market comparables) and a reduction in property taxes (currently under appeal, with projected savings of $7,644 annually based on comparable properties). A $8,500 concession is offered for parking lot resurfacing and striping. The property is currently self-managed, and pro forma financials include a 5% management fee. Expense assumptions were based on per-unit estimates due to limited detailed expense information from the current ownership. The seller is motivated due to a lack of experience managing multifamily assets.

Location Insight

City

Longview

County

Gregg

State

Texas

Longitude

-94.7197239

Latitude

32.4531165