4440 E 29Th Street

    Tucson, AZ 85711
    • $3,700,000
    • STATUS: Active Under Contract
    • ID#: 22008589
    Under Contract
    UPDATED: 148 min ago
    $3,700,000
    • 0
      BEDS
    • 3.04
      ACRES
    • 0
      BATHS
    • 0
      1/2 BATHS
    • 51,620
      SQFT
    • $72
      $/SQFT
    Neighborhood:
    Type:
    Commercial
    Built:
    1979
    County:
    Area:

    School Ratings & Info

    Courtesy of Keller Williams Southern Arizona.

    Description

    NOI - $314,323 ($509,076 - $194,753)Cap Rate - 8.50%Asking Price- $3,700,000(Pro Forma Cap Rate = 14.6%)The Pine Tree Village Apartment 88 plex is a huge value add opportunity, in a Federal Opportunity Zone. It fell out of contract for it's full asking price with the last buyer who suddenly decided to cancel just before closing due to his concerns over the current situation. This despite the fact the owner expressed a willingness to help by possibly negotiating in an ''escrow holdback'' at close, such that the buyer might be able to receive some or all of any possible missing rents for the upcoming four months as compared to the norm. The seller still may consider allowing something such as this with the right offer.The sellers say they will now consider allowing a seller finanof transaction to take place if needed. The amount of $2,000,000 would be the downpayment and the remaining $1,700,000 of the price could be carried back for up to three years using interest only payments. The owners have in the past expected full price with the buyer to also promise that no condition item related credit would be asked for when under contract. Things are always changing as we know including individual seller motivation levels. Qualified buyers are welcome to submit offers during the upcoming week after which the seller will choose the highest and best. The Pine Tree Village Apartment 88 plex is a huge value add opportunity. This property is far under renting even if compared to what could be received were one to only use Section 8 renters and charge them what is now possible per recently updated payment standards. The property has been referred to as being like the ugly duckling on the street compared to the others around it that have been recently upgraded, at least cosmetically, thus allowing much higher rental income. A new future owner could potentially receive $70,186/mo. of rental income once fully stabilized even just based on updated Section 8 rental price standard guidelines, with a 5% vacancy rate. This is a nearly 60% increase over the current monthly rental income level of about $42,000 per month. With a new possible NOI of $620,346 using a 95% occupancy level and the same current expenses other than with a bump up in management and some for more utilities when with higher occupancy, with the rents possible after renovation is done and stabilization occurs, this equates to a 14.6% "Pro Forma" cap rate, sale price. Following are the renovation estimates given me by my local contractor client that has repeatedly been at the property as well as has seen all the inspection reports. Interior rehabbing = $200,000 - ($2,000 max per unit x 88 units = $176,000 + $24,000 extra cushion) *This includes plumbing repairs and drywall replacement where needed. AC's - $100,000 ($2,300/unit avg. installed price as per estimate given by Mechanical Forced Air LLC x 44 upstairs units) All other Exterior Not HVAC related - $250,000 (roof, stairs & decking, painting, landscaping) ________________________________ $550,000 - Total Renovation Expenses

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    Listing information Copyright 2020 MLS of Southern Arizona. All Rights Reserved. Data last updated: 2020-05-27T00:06:42.297.
    The data relating to real estate listings on this website comes in part from the Internet Data Exchange (IDX) program of Multiple Listing Service of Southern Arizona. IDX information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Listings provided by brokerages other than AZ Power Team | RE/MAX Results are identified with the MLSSAZ IDX Logo. All Information Is Deemed Reliable But Is Not Guaranteed Accurate.
    www.tucsonrealestate.net/homes/104597596

    4440 E 29Th Street Tucson, AZ 85711

    • Price: $3,700,000
    • Status: Active Under Contract
    • Updated: 148 min ago
    • ID#: 22008589
    0
    Beds
    0
    Baths
    0
    ½ Baths
    3.04
    Acres
    51,620
    SQFT
    $72
    $/SQFT
    1979
    Built
    Neighborhood:
    Central
    County:
    Pima
    Area:
    Central
    Property Description
    NOI - $314,323 ($509,076 - $194,753)Cap Rate - 8.50%Asking Price- $3,700,000(Pro Forma Cap Rate = 14.6%)The Pine Tree Village Apartment 88 plex is a huge value add opportunity, in a Federal Opportunity Zone. It fell out of contract for it's full asking price with the last buyer who suddenly decided to cancel just before closing due to his concerns over the current situation. This despite the fact the owner expressed a willingness to help by possibly negotiating in an ''escrow holdback'' at close, such that the buyer might be able to receive some or all of any possible missing rents for the upcoming four months as compared to the norm. The seller still may consider allowing something such as this with the right offer.The sellers say they will now consider allowing a seller finanof transaction to take place if needed. The amount of $2,000,000 would be the downpayment and the remaining $1,700,000 of the price could be carried back for up to three years using interest only payments. The owners have in the past expected full price with the buyer to also promise that no condition item related credit would be asked for when under contract. Things are always changing as we know including individual seller motivation levels. Qualified buyers are welcome to submit offers during the upcoming week after which the seller will choose the highest and best. The Pine Tree Village Apartment 88 plex is a huge value add opportunity. This property is far under renting even if compared to what could be received were one to only use Section 8 renters and charge them what is now possible per recently updated payment standards. The property has been referred to as being like the ugly duckling on the street compared to the others around it that have been recently upgraded, at least cosmetically, thus allowing much higher rental income. A new future owner could potentially receive $70,186/mo. of rental income once fully stabilized even just based on updated Section 8 rental price standard guidelines, with a 5% vacancy rate. This is a nearly 60% increase over the current monthly rental income level of about $42,000 per month. With a new possible NOI of $620,346 using a 95% occupancy level and the same current expenses other than with a bump up in management and some for more utilities when with higher occupancy, with the rents possible after renovation is done and stabilization occurs, this equates to a 14.6% "Pro Forma" cap rate, sale price. Following are the renovation estimates given me by my local contractor client that has repeatedly been at the property as well as has seen all the inspection reports. Interior rehabbing = $200,000 - ($2,000 max per unit x 88 units = $176,000 + $24,000 extra cushion) *This includes plumbing repairs and drywall replacement where needed. AC's - $100,000 ($2,300/unit avg. installed price as per estimate given by Mechanical Forced Air LLC x 44 upstairs units) All other Exterior Not HVAC related - $250,000 (roof, stairs & decking, painting, landscaping) ________________________________ $550,000 - Total Renovation Expenses
    Property Features

    Analysis Cap Rate Percent 8.50 Assessments 0.00 Contingent Active Contingent Country Usa Expenses Contract Services 30000.00 Expenses Gas Electric 14041.00 Expenses Insurance 18820.00 Expenses Maintenance Supplies 16089.00 Expenses Management 30000.00 Expenses Other Expenses 4500.00 Expenses Taxes Assessments 39686.00 Expenses Water Sewer 53652.00 Fire Protection Included in Taxes Income Adjusted Gross 509076.00 Income Gross Scheduled Rent 503076.00 Income Net Opp Income 314323.00 Income Other Income 6000.00 Lot Dimensions irregular Lot Sqft 132422.00 Municipality Zoning Tucson - R3 Property Sub Type Apartment Short Sale No Source Of Sqft Assessor Tax Year 2019 Taxes 39686.35

    Listing provided courtesy of Keller Williams Southern Arizona. Listing information © 2020 MLS of Southern Arizona.


    Listing information Copyright 2020 MLS of Southern Arizona. All Rights Reserved. Data last updated: 2020-05-27T00:06:42.297.
    The data relating to real estate listings on this website comes in part from the Internet Data Exchange (IDX) program of Multiple Listing Service of Southern Arizona. IDX information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Listings provided by brokerages other than AZ Power Team | RE/MAX Results are identified with the MLSSAZ IDX Logo. All Information Is Deemed Reliable But Is Not Guaranteed Accurate.
     
    AZ Power Team | RE/MAX Results
    4640 E Sunrise Drive, Suite 215
    Tucson AZ, 85718
    Courtesy of Keller Williams Southern Arizona.