$1,700,000
An opportunity to own one of Custer’s established multifamily properties. Valley Hi Apartments offers 28 units, 14 studios at approx. 403sf and 14 one-bedrooms at approx. 528sf, in a walkable location close to downtown Custer and services. Built in 1972, the two-story, wood-framed, slab-on-grade buildings total approximately 17,480 square feet on 0.7 acre and feature low-maintenance metal siding. The property includes an on-site leasing office, two laundry rooms with owner-owned, coin-operated machines, and 26 on-site parking spaces, including 6 accessible spaces. Heat is hydronic hot water from two propane-fueled boilers in the first-floor mechanical room, served by a 1,000-gallon propane tank, with a common 108-gallon hot water system and a water softener. The property recently transitioned out of the HUD program, so the new owner is free to set rents and manage tenancy without HUD contract restrictions. Current all-inclusive rents are $889 for studios & $983 for one-bedrooms, with the owner paying utilities. Additional income comes from on-site laundry. Before the transition, the property historically ran at near-full occupancy with a waiting list. Key updates are already done. The flat roof received a new TPO membrane in 2022, the boiler circulation pumps were replaced in 2022, every unit has been converted from fuses to modern breaker panels, and new flooring has been installed in four units. Lease-up of the current vacancies, along with targeted unit updates, offers a clear path to stronger income. Because utilities are currently included in rent, separately metering unit electricity offers a new owner another opportunity to reduce operating expenses and increase net income. Offered at $1,700,000, approximately $60,700 per unit and $97 per sf. In-place cap rate approximately 6.4%; pro forma cap rate approximately 10.6% at stabalization.
181589
MLS
545 Lincoln, Custer