Higdon Ferry Apartments
139 Units | Hot Springs, AR | 98% Occupied
Marketing description
Higdon Ferry is a 139-unit property in Hot Springs, Arkansas, directly adjacent to Oaklawn Racing Casino Resort. Hot Springs' major employers are Oaklawn Racing Casino Resort, National Park Medical Center, and CHI St. Vincent, anchoring a 44,800-person labor force with little to no new multifamily supply planned in the submarket.
The property is 95.7% physically occupied and has held above 90% occupancy for the past five years. Current ownership has completed the major capital plan: new roofs across all 8 buildings, HVAC upgrades, a new boiler installed January 2026 (~$40K), refreshed common areas, and repair of a subsurface water leak that pulled monthly water bills from a $7,500–$8,000 peak down to a $4,500–$5,000 run rate. An AT&T Fiber agreement is live and paying revenue share.
NOI has climbed from $744K on the OM T-12 to $853K on the 5/26/26 T-12 — a $109K, 14.6% lift. Delinquency dropped 32% earlier in the quarter ($20.5K → $14K past due) and has since drifted to ~$19K across 20 units, still range-bound, with two tenants carrying $4,400 of the total. Remaining upside sits in the 60 of 139 units (43%) still in Classic or Original condition and in closing a 9% loss-to-lease on in-place rents.
Investment highlights
Return Stack — at $10.5M ask, 5/26/26 T-12 NOI
- Going-in cap: 8.1%
- Stabilized cap at $863K NOI: 8.2%
- Day-one cash-on-cash: ~14% in the IO window
- Rent premiums on recent turns: +$60–$70/unit/month
Property Highlights
- 139 units directly adjacent to Oaklawn Racing Casino Resort
- Unit mix: 98 one-bedroom, 40 two-bedroom, 1 studio (70% / 29% / 1%)
- 95.7% physical occupancy; 90%+ historical for 5 years
- New roofs across all 8 buildings, HVAC upgrades, new boiler (Jan 2026, ~$40K), refreshed common areas, subsurface water leak repaired
- AT&T Fiber live and paying revenue share
- Little to no new multifamily supply planned or proposed in the Hot Springs submarket
Underwriting Notes
- 5/26 T-12 NOI: $853K (up $109K from the OM T-12 of $744K)
- Rent growth runway: 60 units (43%) still in Classic or Original condition; recent turns pulling $60–$70/mo premiums
- Loss-to-lease: 9% on in-place rents ($114,841/mo in-place vs $126,190/mo market per RR). Comp set (Chapel Ridge, Crossing at Thornton Ferry, Forrest Hills, Somerset) averages $1,067/unit vs in-place $858
- Delinquency: down 32% earlier in the quarter ($20.5K → $14K); range-bound at ~$19K across 20 units today, with two tenants carrying $4,400
- Water expense: post-repair run rate $4,500–$5,000/mo vs $7,500–$8,000 peak; recent T-12 reflects billing-timing volatility (Feb 26 spike to $12,854, March 26 at $0)
- Property tax: 2025 bill on the T-12 at ~$42K
- Financing: Fannie Mae indicative quote supports 75% LTV with up to 5 years IO (loan ~$7.9M at $10.5M basis; rate subject to refresh)
- Management: Third-party manager in place and available to stay on for out-of-state ownership
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