The King Apartments Sells for $850,000
SALEM, Oregon: The King Apartments sold for $850,000, and features twelve, one-bedroom units. The property is located across the street from North Salem High School, has off-street parking, vinyl windows and a laundry room. The seller owned the property for two years, and the previous owner owned for approximately eight years.
SALE SUMMARY:
Price: $850,000
Price per unit: $70,833
Estimated Cap Rate: 5.75%
Price per square foot: $120
Overall, the property was in average to good condition, with rents slightly below market levels. Most of the units have some type of hardwood flooring, newer appliances, and good quality vintage cabinets. Overall, the fixtures look great with tile tub surrounds and very comfortable and quiet units. In addition, the units have a back porch area. All of the units are one bedroom and contain one bathroom.
There is potential to increase the quality of the units, and the new owner wishes to provide a high quality of living for the tenants. Potential upgrades include: moving garbage area to the rear of the property in the alley, extensive cleaning of the property, ensuring there are energy efficient windows and sliding glass doors in all units, and seal coating and striping the parking lot.
Bertolucci Property Management will operate the property, here is their website: Bertolucci Property Management. Bertolucci Property Management started in 2005, and is a family owned and operated company specializing in small to mid-sized residential properties. Here is a list of their available properties, contact Lisa Lockhart for more information on the firm.
The property was not listing on the market for sale, the offer was an “unsolicited” offer submitted to the seller by Joseph Chaplik of Joseph Bernard Investment Real Estate. Bernard Gehret of Joseph Bernard Investment Real Estate represented the buyer. Jeremy Snow of Collier’s International appraised the property, and Umpqua Bank financed the purchase. The Commercial Lending Group served as the mortgage broker for the loan.
