TAKARA-SO COMPLEX BACK ON THE MARKET, THIS TIME WITH NEW UTH UPGRADE If you were thinking its purchase by a SoCal investment firm almost exactly 1 year ago meant the pseudo-Japanesee 1962 apartment complex at 1919 W. Main St. would be shielded from the evict-and-redevelop cycle for a few years, think again. Apartment Income Investors has put the Takara-So Apartments, which sit on most of the block surrounded by Hazard, W. Main, Colquitt, and McDuffie, back on the market — with a twist. Though on-site signs have not been changed, the complex is described as the Takara South Apartments in a sleek set of marketing materials produced by Newmark Grubb Knight Frank, the firm that’s marketing the 77-unit, 10-building, 1.22-acre property once owned by Allen Stanford. Why unload the storied complex now? So much has happened in a Montrose year: There’s that $2.05 million jump in the property’s tax appraisal. And maybe some profits to be made: Though no asking price is listed, included comps indicate the sellers are likely aiming for offers between $8 and $10.8 million. The purchase price was listed on company documents as $5.51 million. [LoopNet; previously on Swamplot] Photo: Newmark Grubb Knight Frank
There’s nothing like missing the market!
Weird that this is being marketed by Newmark Grubb Knight Frank. I thought they bought Apartment Realty Advisors to grow into multifamily. Seems a little confusing, but oh well…
NGKF also has brokers who sell MF.
With all the new stores and homes going up in this area that’s walking distance, a developer could come in and put up several $1M+ free standing homes in the area then call the neighborhood “North University” for marketing purposes.
Comedy. The people that bought it over paid, and now they know it. They think the market has got even dumber and are hoping to unload it.
If they even get their money back I’d be surprised. But then again, at the price people are paying for Montrose apartments, who knows…
Oh, and “price undisclosed” but they mention a 5.35 CAP on loopnet. And their NOI per flyer is $450k. That makes the starting asking price over $8.4m. Which is over $100k/door for some pretty beat units on a chiller property. Oh, and well over $150/SF on the dirt.
IMO the place is worth about $4.25m ($80/SF/dirt) to $5.77m ($75k/door).
But wtf do I know. People have been bidding way more for Montrose stuff than I’d pay.
a 32% increase in property tax assessment equates to about $60k in cashflow the owners are having to take a hit on. I agree with Cody, the land value is the basis and that is not over $100 a foot for that area. I have a low cap rate deal just like this one, but at least mine has possibility of seller financing in a better Montrose location if anyone is interested.
I live a couple blocks away, and I would agree with Cody about the $80/sf dirt rate. Teardowns for single 6250 sf lots have been going for $600K, or $96/sf, but Takara-So occupies a whole block, so I would expect it to go for less per sf.
Google: I sold my 4plexes on the 1800 block of west main (literally on the other side of the street) under $100/SF on the land. Sold them as I was tired of getting kicked in the nuts by the city after taking boarded up properties and gutting them to make them nice. Bye vintage low cost rentals in 40s fourplexes. Enjoy your townhomes (sorry, I still hold bitterness towards the city and their aggressive actions towards people fixing up older places)