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 a $2,999,995 purchase price, representing a 8.99% going-in cap rate based on a T-12 NOI of approximately $269,000. Current average rents of $850/unit/month sit well below the submarket average of roughly $1,200/unit/month, providing clear and immediate value-add potential.
A key highlight of this opportunity is the attractive assumable debt, with the ability to layer in a $650,000 supplemental loan for a combined $2,525,000 loan balance. The structure includes a $1,875,000 loan at 3.75% and Option of adding a $650,000 supplemental loan at 6.50%, both on 25-year amortization, resulting in a blended interest rate of ~4.46%. This equates to 84% loan-to-value and delivers a strong ~19.78% takeover cash-on-cash return.
Pro forma rents of approximately $1,270/unit/month support a projected Year-1 NOI of ~$287,000, translating to an 9.58% pro forma cap rate and ~22.93% cash-on-cash return. Additional upside remains through new laundry income and the conversion of a vacant Maryland Avenue unit into an income-producing apartment.
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
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