Cornish Heights Apartments Home / Cornish Heights Apartments

$ 5,650,000

Cornish Heights Apartments 

  • SALE PRICE $5,650,000
  • BUYER EPH Properties
  • SIZE 120 Units
  • PROPERTY TYPE Multifamily
  • YEAR BUILT 1968

CHALLENGES

  • Off-market deal
  • Original unit finishes from 1968
  • Poor trailing financial report

RESULTS

  • Closed on time
  • Sub five cap rate
  • Smooth transaction

MAJOR POINTS:

  • 4.62% cap on T-12
  • $47,083 per unit
  • Took over a year to put the deal together

PROJECT OVERVIEW

Scott located this deal off-market and brought it to a group that was in escrow on a deal he had listed just down the road (Ponderosa Point), increasing the likelihood of closing on the listing by increasing the buyer’s upside and management efficiencies in the area. Cornish Heights is a 120-unit property built in 1968 and still owned by the original family that developed it. The location is awesome, near Aksarben Village and Bergan Mercy Hospital, just off 72nd and Pacific Street, in the heart of Omaha. Cornish Heights was a very unique off market deal, the trailing financials were not strong or clean, rents were way below market with plenty of room to grow, occupancy was in the 80%’s (Omaha market is 96%) and the unit interiors were vintage 1968, clean but very dated finishes (blue, green and yellow showers, toilets, tile and vanities). The property was also hit with two damaging hailstorms during the process further complicating the transaction (property was also hit by the 1975 Omaha tornado). The Buyers are currently repositioning the property, unit upgrades include new kitchen and baths and flooring, and adding some amenities to help increases rents to market level.

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