1393 Lapaloma Street
Workforce housing with proven upside
Marketing description
Workforce Housing with Proven Upside
130% NOI Growth Since 2023
80 Residences
LIHTC / LURA & PILOT Structure through 2030
Midtown I Memphis MSA
93% Economic Occupancy *
1954 Construction
$3,550,000 | $44,400/Unit
NOI: $267,000
Cap Rate: 7.5%
Lapaloma Apartments is an 80-unit workforce housing community located in Midtown Memphis. The property features an 80% two-bedroom unit mix, 93% economic occupancy, and benefits from a market-aligned LIHTC/LURA affordability framework and a PILOT tax abatement through approximately 2030.
Current ownership has invested nearly $250,000 in renovations while increasing rents and growing NOI by more than 130% since 2023. With additional upside through lease-up and rent optimization, Lapaloma offers investors a compelling blend of stability and growth.
Located in Memphis' Urban Core, the property offers convenient access to local employment centers.
*Excludes 9 units temporarily offline for renovation and turnover.
Investment highlights
Proven Value-Add with Remaining Upside - Nearly $250,000 in capital improvements since 2023 has increased rents from the low-$600s to $750-$800 on renovated two-bedroom units while driving NOI growth of over 130%.
Two-Bedroom Concentration with Rent & Lease-Up Upside - 80% of the property's unit mix consists of two-bedroom apartments, 50% of which currently achieve rents of $750-$800, including 14 units at $800 per month. An additional 29 two-bedroom units remain positioned for future rent growth as leases renew, while 9 units are currently offline for renovation and turnover, creating further occupancy and NOI upside.
PILOT Tax Abatement Through 2030 - Annual real estate taxes remain approximately $7,000 through 2030, providing a meaningful cash flow advantage.
Market-Aligned LIHTC/LURA Structure - The property's LIHTC/LURA framework supports long-term demand from workforce households, while allowable rents remain generally consistent with market rents throughout the submarket.
Operational Efficiency Opportunity - Historical financials reflect an active renovation and turnover program, creating potential for future operating efficiencies as the asset stabilizes.
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