Stabilized New Orleans East Multi-Family Complex

Multi-Family for Sale
Sale Pending/Contingent
Catylist Listing ID: 30030606
Property Subtypes: Government Subsidized, Low-Rise/Garden
Status: Pending/Contingent
Number of Units: 117 Units
Building Size (RSF): 80,364 SF
Gross Building Area: 81,889 SF
Gross Land Area: 168,503 SF
Sale Price: $3,750,000
Unit Price: $32,051.28 Per Unit
Property Use Type: Investment
Building Name: Magnolia Gardens
Sale Terms: Cash to Seller
Cap Rate: 8.89%
Average Occupancy Rate: 95
Last Updated: 9/12/2017

Overview / Comments

Re/Max Commercial Brokers is excited to present the 117 unit Magnolia Gardens apartment complex to the market. Originally constructed as two garden apartment complexes in the mid-1960s, the now combined asset is located in the New Orleans East submarket, approximately 8.8 miles east of the New Orleans Central Business District. Over the past three years, Magnolia Gardens has undergone about $670,000 in renovations, which included significant interior upgrades to 55 of 117 units (including, in many cases, new cabinetry, countertops, appliances, HVAC, and water heaters). Additionally, cosmetic repairs, mostly painting, minor drywall repairs, and flooring ranging from $500-$2500 to another 25 units (totaling 80 units renovated) were made upon takeover by current ownership in 2014.

The subject was partially renovated utilizing Federal Home Loan Grant. In order to obtain the financing, ownership agreed to reserved 60% of the units for tenants earning below 50% of the median area income. The remaining 40% of the units are leased to market-rate households. Nearly half of the affordable units are subsidized with Section 8, Unity, Catholic Charities, etc. Currently about 25 units are rented to Section 8 tenants. The property does not have a HAP contract.

Financials

Finance Data Year 2016
Real Estate Taxes - Annual($) $35,467 (Annual)
Net Operating Income $307,590 (Annual)
Gross Operating Income $782,974 (Annual)
Actual or Proforma Year Actual

Additional Details

Nearest MSA: New Orleans-Metairie
County: Orleans
Submarket/Township: Northshore / N.O. East
Tax ID/APN: 41095119
Zoning: SUBURBAN MULTI-FAMILY RESIDENTIAL DISTRICT (SRM- 2)
Percent Occupied: 95%
Community Amenities: Outdoor Pool, On-Site Maintenance
Property Located Between: Dwyer & Morrison
Highway Access: I-10 via Downman Road exit
Site Description: Magnolia Gardens is located at the intersection of Downman and Dwyer Roads, .6 miles from the Downman Road I-10 exit, 8.8 miles east of the New Orleans Central Business District and 17.6 miles east of Louis Armstrong New Orleans International Airport. This area contains the New Orleans East, Venetian Isles, and Village d l’Est Districts in New Orleans. It is roughly bounded by Lake Pontchartrain, the Industrial Canal, and the Mississippi River Gulf Outlet/Lake Borgne area.
Area Description: New Orleans East is a neighborhood poised for unprecedented growth. The close-knit community has a small town feel, but offers big city development opportunities. The East is the only area in New Orleans to offer large tracts of land available for development, and provides a blank canvas for new retail expansion. With almost 75,000 residents in New Orleans East and very few existing businesses, retail and restaurants are in high demand. The East has a trade area population of over 182,000. Access to major traffic on Interstate 10 makes it an ideal location for regional retail shopping. The area is in a perfect intercept position for residents returning to the Slidell area from jobs in New Orleans. The main retail corridors of Bullard Avenue, Read Boulevard, Crowder Boulevard and Chef Menteur Highway are the focal points for a variety of new retail projects. The new Walmart Supercenter at the intersection of Bullard and I-10, opened to packed aisles in fall of 2014. Another Walmart opened in Gentilly (4301 Chef Menteur Highway) August 13th of thisyear brining more retail convenience into the area. The planned East Town shopping center redevelopment at the corner of Read Boulevard and Interstate 10 will include popular retailers and dining options. The redeveloped Joe Brown Park sports complex features state of the art athletic fields including a turf football field, a $3.8 million football complex, renovated recreation center, 8-lane running track, $3.0 million indoor pool renovation, baseball, tennis courts, improved walking trails, a small amphitheater, picnic shelters and concession stands. There are also 2 new schools that are currently under construction along Read Boulevard. The other major development in the area is the recent completion (2014) of the New Orleans East hospital on the site of the former Pendleton Memorial Methodist Hospital on Read Boulevard. This site was redeveloped with a new $130 million, 80-bed hospital. It includes a 71,700sf Patient Care Pavilion as well as a renovated 133,640sf existing East Tower. In addition, Folgers Coffee recently announced a new $70 million expansion of their facilities at their Chef Menteur facility. This expansion is expected to create an additional 120 jobs.
Total Number of Buildings: 8
Property Condition: Good
Number of Stories: 2
Year Built: 1965
Year Renovated: 2015
Roof Type: Hip
Construction/Siding: Brick/Vinyl Siding
Exterior Description: Wood-frame buildings on concrete slabs. Exteriors are a mixture of brick veneer and vinyl siding.Open concrete breezeways. Upper level landings are lightweight concrete and/or wood construction. Stairs are metal with metal or concrete treads and metal railings. Unit entry doors are paneled insulated steel. Windows are single hung in aluminum frames with insulated glass. Sliding glass doors open to patio/balcony.
Parking Type: Surface
Total Parking Spaces: 100
Laundry: Shared
Sprinklers: None
Heat Type: Electricity
Heat Source: Central
Fuel: Electric
Internet Access: Cable
Interior Description: Neutral painted walls and ceilings; floors are a mixture of carpet, vinyl tile, ceramic tile and wood plank vinyl tile; window blinds. All units have ceiling fans. Kitchens are equipped with Formica countertops, a free-standing refrigerator, dishwasher, free-standing, range/oven with fan hood, and stove. Ceramic, VCT and/or vinyl flooring, wooden base vanity cabinet; Formica countertop with stainless sink; porcelain commode; glazed steel tub/shower with ceramic tile surround or fiberglass tub/shower unit; oversized mirror; medicine cabinet; and Hollywood lighting.
Zoning Description: Per the New Orleans Comprehensive Zoning Ordinance, the SRM-2 district is “intended to maintain a residential environment that permits a variety of dwelling types. Population density is maintained in the medium range, and multi-family buildings up to four stories are permitted. The district is intended for suburban multi-family areas. Limited non-residential uses such as places of worship that are compatible with surrounding residential neighborhoods may be allowed.”
Lot Frontage: 260
Lot Depth: 334
Water Service: Municipal
Sewer Type: Municipal

Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 11,003 72,895 189,536
Median Age: 34.94 34.27 35.44
Households: 4,080 27,965 76,040

Contact

Photograph of Listing Agent

Jonathan D Shaver

RE/MAX Commercial Brokers Inc Metairie, LA 70002
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