Investment Overview

Marcus & Millichap proudly presents Douglas Terrace Apartments, a premier 202-unit market-rate community situated at 3538-3706 Douglas Avenue in the vibrant city of Racine, Wisconsin. This well-maintained property represents a prime investment opportunity in a growing market. Douglas Terrace Apartments is composed of eight buildings featuring 15 distinct floor plans. The unit mix includes the following: (8) A1 studio units with one bathroom; (64) B1 one-bedroom, one-bathroom units; (24) B2 one-bedroom, one-bathroom units; (3) B3 one-bedroom, one-bathroom units; (4) B4 one-bedroom, one-bathroom units; (1) B5 one-bedroom, one-bathroom unit; (8) B6 one-bedroom, one-bathroom units; (4) B7 one-bedroom, one-bathroom units; (2) B8 one-bedroom, one-bathroom units; (16) C1 two-bedroom, one-bathroom units; (24) C2 two-bedroom, one-bathroom units; (24) C3 two-bedroom, one-bathroom units; (2) C4 two-bedroom, two-bathroom units; (2) C5 two-bedroom, two-bathroom units; and (16) D1 three-bedroom, two-bathroom units. Currently, 43 units have been remodeled, offering immediate income potential, while the remaining 159 units provide a lucrative value-add opportunity upon renovation. Tenants are responsible for electricity and are billed via a ratio utility billing system (RUBS) for trash, pest control, and water/sewer. Currently, 25% of residents are enrolled in the water/sewer ratio utility billing system (RUBS). The landlord covers the cost of gas heat, gas hot water, the initial water/sewer bill, and the initial trash bill. The recent implementation of RUBS charges creates an additional revenue stream, enhancing the property's value proposition. Douglas Terrace Apartments boasts an array of amenities designed to enhance resident satisfaction and lifestyle. The community features a newly renovated pool and sundeck, offering a modern and inviting space for relaxation. Pet owners will enjoy the new dog park, complete with agility equipment and seating areas, creating an ideal spot for both exercise and socializing. Other amenities include an on-site playground, a picturesque courtyard, BBQ and picnic areas for outdoor gatherings, surface lot parking, and underground parking available for $50 per month. Each building is equipped with on-site laundry facilities, and the property offers package-receiving services, ensuring secure and convenient delivery for residents.