1115 Raymond Rd.
Multifamily | 7.00% CAP | 23 Units
Marketing description
Asset Business Group, LLC, is the leading purchaser and developer of value-add mobile home parks nationwide, having closed and renovated eight parks across five states in the past 12 months. The principals have also renovated more than 2,000 apartments over the last 20 years. We are currently involved in major land development for mobile home park communities across seven states. We simply do not have the time or geographic footprint to manage and renovate our Jackson portfolio at this time, so we have decided to market the value-add apartment project located at 1115 Raymond Road, Jackson MS as well as a fully renovated retail building at 2104 Raymond Road, a fully renovated apartment building at 3811 Mosley Avenue and two partially renovated apartment complexes located at 1021 Raymond Road (46 units), and 1125 Raymond Road (80 units), all near the downtown corridor in Jackson Mississippi.
The subject property is located at 1115 Raymond Road, Jackson, MS 39213. The property is a partially renovated 25-unit apartment complex. The roof has been replaced, and the exterior painted. Two upstairs units need to be rebuilt, and their interiors renovated. The city of Jackson, Mississippi, is home to a thriving downtown and many top-rated universities. There is a limited supply and high demand for affordable apartments in gated, guarded communities.
Investment highlights
- 1115 Raymond Rd. presents a rare 'Middle-Market' value-add opportunity consisting of 23 units in the high-demand South Jackson corridor. This property is uniquely positioned as an Exterior-Complete Renovation. The heavy lifting—roofing, exterior paint, and the structural envelope—is complete, allowing the incoming investor to deploy capital exclusively toward high-visibility interior finishes that drive immediate rental premiums. The ~$51,000 per-unit acquisition basis represents a strategic 'entry floor' that de-risks the entire investment.
- When factoring in the $30,000/unit interior budget, the all-in basis is approximately $81,000 per unit. With stabilized comps in the 39204 area now trading at $102,000+ per unit, the investor is walking into a massive equity cushion upon the completion of the interior turn. This low entry basis provides a defensive buffer against potential market shifts. The investor can still realize a significant profit even in a conservative exit scenario, making 1115 Raymond Rd. one of the most stable 'Alpha' opportunities on Raymond Road.
- 1115 Raymond Rd. occupies a unique 'sweet spot' within the South Jackson submarket. Positioned in a primary residential mid-corridor, it offers a distinct buffer from the high-traffic noise of the major intersections while remaining less than a mile from the city's primary transit veins.
- Unlike properties directly on the I-20 frontage, this location offers a 'neighborhood feel' that appeals to long-term tenants, particularly families and young professionals. This characteristic is a key driver for lower turnover rates and higher tenant pride of ownership. The mid-corridor is less susceptible to the volatility of purely commercial zones. It benefits from a stable, established residential environment that protects the asset's long-term floor value.
- 1115 Raymond Rd. is strategically positioned to capture the overflow, specifically the administrative staff, legal clerks, and government employees who drive the city's civic center. By offering 'like-new' interiors at a price point significantly lower than downtown lofts, the property allows these professionals to maintain a lower rent-to-income ratio while enjoying a superior, modern living space.
- The property's proximity to the I-20/I-55 interchange (the 'Crossroads of the South') ensures it remains a top-tier choice for the regional logistics workforce. Jackson serves as a critical node for e-commerce and regional distribution. The workforce supporting these 24/7 operations requires housing that offers unimpeded highway access. 1115 Raymond Rd. provides a 'straight-line' path to the city's largest industrial parks.
- Being located just 8 minutes from the city center allows the property to compete for higher-earning tenants—legal clerks, municipal staff, and corporate professionals—who want a 'commuter-lite' lifestyle at a fraction of the cost of downtown loft living.
- Immediate access to the I-20 corridor ensures that residents are not just close to downtown but also strategically positioned for weekend travel and access to regional logistics hubs.
- The renovated apartments have market rents of $900 per unit, equating to $270,000 annual gross income for the renovated one-bedroom units. We have conservatively estimated the vacancy rate at 10%, indicating an effective gross annual income of $243,000.
- We have very conservatively estimated expenses at 35% of effective gross income, even though everything is fully renovated. The estimated annual net income is $157,950. We have applied a 7% capitalization rate to this investment-grade property to estimate a value of $2,250,000 (R) after stabilization.
- The cost to build the new property would exceed $4,000,000, not including the land, which serves as a barrier to competition from new development.
- The 7% cap is justified by the property's recent CAPEX (New Roofs/HVAC 2024-2025) and the implementation of a Ratio Utility Billing System (RUBS), which significantly de-risks the investor from rising utility costs.
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