Investment Overview

Marcus & Millichap has been exclusively retained by Lima One Capital, LLC to arrange the sale of the Baton Rouge Portfolio, a 161-unit multifamily portfolio in the Brookstown corridor of North Baton Rouge. The portfolio consists of four complexes, 5617 Prescott Rd (60 units), 5515-5523 Prescott Rd (50 units), 3942 W Brookstown Dr (20 units) and 4189 W Brookstown Dr (31 units), totaling approximately 95,115 rentable square feet on sites within roughly one mile of each other. This is a lender-owned disposition. The seller is a national lender managing the assets through special servicing, and the offering is priced accordingly at $3,200,000, or $19,876 per unit, a fraction of replacement cost. Per the latest available rent roll, 70 of 161 units are occupied. Trailing operations are negative before real estate taxes and insurance, and the value in this offering is in the lease-up. At currently advertised street rents the portfolio carries $1,338,000 of gross rent potential, and each ten points of occupancy recovered represents approximately $134,000 of annual revenue. Approximately 45 units have been renovated or turned to date and roughly 70 units of interior runway remain. Renovated units are being marketed at current advertised street rents, which gives an incoming operator a defined scope and a basis that supports the capital program. The stabilized pro forma carries taxes and insurance above the line and produces $618,729 of net operating income, a 19.4% implied yield on the purchase price before buyer renovation, exterior repair and lease-up capital. The portfolio is offered as is, where is, free and clear of existing debt. Individual or combination offers will be presented and are subject to Seller approval. Current rent rolls, trailing operating statements and certified surveys are available to qualified purchasers through the listing team.