Longbow Estates
Multifamily | 25 Units | $98,000/unit
Marketing description
SVN Oak Realty Advisors is pleased to present the exclusive offering of Longbow Estates, a well-maintained 25-unit multifamily property located in Lavaca, Arkansas. Built in 2010, the asset features large floorplans, in-unit garages, and a desirable unit mix catering to long-term renters seeking affordability and space.
Longbow Estates offers investors a value-add opportunity with limited capex exposure and strong in-place performance. Renovations totaling just $3,000 per unit are projected to drive an average rent premium of $65/month, yielding a compelling 25.04% ROI. Post-renovation rents are underwritten at $981 /month ($0.86/SF), aligning with local market dynamics while remaining competitively positioned within the submarket.
At the asking price of $2,350,000 ($94,000 per unit), the deal offers immediate cash flow with Year 1 and Year 2 projected returns of 7.24% and 7.18%, respectively, and a stabilized Year 3 NOI of $194,008. The offering underwrites to a 7.24% pro forma cap rate and 6.34% average cash-on-cash return across the hold period.
Situated in a stable rental corridor with limited nearby supply and a growing demand for workforce housing, Longbow Estates presents a low-density, high efficiency investment opportunity backed by strong fundamentals and durable income potential.
Investment highlights
LIGHT VALUE-ADD STRATEGY
25-unit, garden-style multifamily asset with a $72K renovation budget (-$3,000/unit) focused on light interior upgrades. Enhancements are designed to drive rental growth and boost long-term asset value.
RECENT VINTAGE, STRONG BASICS
Built in 2010, Longbow Estates features large two- and three-bedroom units averaging 878 SF, private garages, and a low-density site plan tailored to family renters and long-term tenancy.
CASH FLOWING WITH UPSIDE
Offered at $2,350,000 ($94,000/unit), the deal underwrites to a 7.24% pro forma cap rate and 5.50% Year 1 cash-on-cash return, supported by Fannie Mae debt at 6.50% fixed.
RENT UPSIDE & MARKET GAP
Current in-place rents average -$872/month, with post-renovation rents projected at -$981 /month. Rent increases of 8-10% are supported by comps, generating a 25.04% ROI on improvements.
BALANCED UNIT MIX & LARGE FLOORPLANS The mix of 2 Bed/ 1.5 Bath, 2 Bed/ 2 Bath, and 3 Bed/ 2 Bath units supports diverse demand and allows for scalable rent increases across floorplans.
LIMITED SUPPLY, SOLID DEMAND
Lavaca is a supply-constrained submarket with few competing new developments. The property's size, layout, and affordability position it for consistent demand and long-term income stability.
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