Lemon Bay Villas
6.8% Cash-on-Cash | Immediate Value-Add Upside | Florida Apartments
Marketing description
- At $167,000 per unit, the Property prices below replacement cost for a coastal two-bedroom asset. The three vacant units offer immediate rental upside, stabilizing toward a 7.0% cap rate as units lease up and rents move to market.
- Less than a half-mile Dearborn Street, Englewood’s “Main Street,” and under ten minutes to Englewood Beach and Manasota Key – the #22 Best Place to Retire in the U.S. The submarket carries a median age of 68 and average household incomes of nearly $100,000 within ten minutes.
- Select units feature updated kitchens, luxury vinyl plank flooring, and renovated bathrooms, while the remaining units, common areas, and exteriors offer clear value-add runway day 1. All units feature in-unit washers/dryers, a heavily sought after amenity in Sarasota County.
- In-place rents of $1,480 sit well below comparable two-bedrooms in the submarket, which on average achieve $1,570. As leases expire and units are renovated, the rents have a clear path toward $1,650 pro forma in FY2.
- Half of the roofs were replaced in 2022, with recent HVAC and hot water heater upgrades across the community. This significantly reduces near-term mechanical risks, allowing a new owner to focus their capital on low-cost / high-impact curb appeal improvements and renovations.
- The Property spans six individual parcels across duplex-style buildings, giving a future owner the flexibility to convert to condos, sell as individual buildings, or explore short term rental options.
- Water and sewer are individually metered and billed to residents, materially reducing ownership's expense exposure relative to many master-metered coastal assets in the area.
- The Property withstood two Category 4 hurricanes and a Category 3 hurricane all within the past four years with no significant damage. Lemon Bay Villas is not in a flood zone and does not require lender-mandated flood insurance – a major recurring expense advantage.
Investment highlights
Colliers, as exclusive broker, is pleased to offer the opportunity to acquire Lemon Bay Villas (the "Property"), a 12-unit, all two-bedroom apartment community in the wealthy Englewood submarket of Sarasota County, Florida. The Property offers immediate lease-up and mark-to-market upside priced well below replacement cost at a 6.6% cap rate, with average in-place rents of $1,480 on 9 occupied units and located in a submarket where comparable two-bedroom rents average $1,570. This supports a clear path to a 7.0% cap rate in FY1 upon stabilization and an initial cash-on-cash return exceeding 6.8%. All units feature in-unit washers and dryers and select units have been renovated with updated kitchens and luxury vinyl plank flooring, paving the way to strong immediate upside, organic rent growth supported by the market, and minimal mechanical systems in need of repair. Located a half-mile from Dearborn Street and ten minutes from Manasota Key, the #22 Best Place to Retire in the U.S., the submarket carries a median age of 68 and average household incomes of nearly $100,000. Spread across 6 separately deeded parcels, Lemon Bay Villas offers immediate value-add upside and multiple exit strategies.
Listing Contacts
Valuation Calculator
Valuation Metrics
Map
Zoning
Broker Selected Comps View More Comps
Property History
Similar Properties
Additional Information
Is there information that looks off?
