31 - Unit in Mt. Vernon with 3% Assumable Debt
Mt. Vernon | Under $100K/Unit with ~3% Assumable Debt
Marketing description
The Mt. Vernon Portfolio is offered at $2,999,995, representing an 8.99% going-in cap rate based on a T-12 NOI of approximately $269,000. Current average rents of $850/unit are well below the submarket average of roughly $1,200/unit, creating clear value-add upside.
A key highlight is the attractive assumable debt, including a $1,875,000 loan at 3.75% with the option to add a $650,000 supplemental loan at 6.50%, for a combined loan balance of $2,525,000. This creates a blended rate of approximately 4.46%, 84% LTV, and a projected 19.78% takeover cash-on-cash return.
Pro forma rents of approximately $1,270/unit support a projected Year-1 NOI of ~$287,000, a 9.58% pro forma cap rate, and ~22.93% cash-on-cash return, with additional upside from laundry income and converting the vacant Maryland Avenue unit.
The portfolio is located in a prime Mt. Vernon corridor near major dining, cultural, educational, medical, and transit anchors, including Lexington Market, the Walters Art Museum, Peabody Institute, UMMC Midtown, University of Maryland Baltimore, Johns Hopkins, Light RailLink, Metro SubwayLink, CityLink routes, and the Charm City Circulator.
Investment highlights
Attractive In-Place Financing: Assumable agency debt totaling $2.525M ($1.875M at 3.75% + $650K at 6.50%) on 25-year amortization, with a blended rate of ~4.46% and an effective LTV of ~84%.
Strong Day-One Performance: Offered at a 8.99% going-in cap rate and generating an estimated ~19.78% cash-on-cash return at acquisition.
Compelling Value-Add Upside: Pro forma cap rate of ~9.58% and ~22.93% cash-on-cash return
Rent Growth Potential: Opportunity to increase below-market rents to ~$1,130 for studios and ~$1,360 for one-bedrooms.
Additional Unit Upside: Renovate the gutted unit at 2200 Maryland Ave to add new income stream.
Extra Income from Laundry: Shared laundry installation projected to add ~$3,224 in annual revenue.
On-Site Coin Laundry: Coin-operated washers/dryers in two buildings
Excellent Public Transit Connectivity: The property is situated in a transit-rich area with multiple public transportation options, enhancing its appeal to a wide range of tenants.
Proximity to Key Landmarks: The property is within walking distance to cultural institutions, dining options, and entertainment venues, enhancing its desirability for residents.
Location Upside: Prime Accessibility in Mount Vernon including Penn station, University of Baltimore, Maryland Institute College of Arts
Listing Contacts
Valuation Calculator
Valuation Metrics
Map
Broker Selected Comps View More Comps
Property History
Tax History
Similar Properties
Additional Information
Is there information that looks off?
