56 Condominium Units – Currently Owned & Managed As An Apartment Complex
Located on Park Avenue in downtown Tallahassee, within walking distance of Starbucks, Mission BBQ, Smash Burger, and more dining and entertainment. All these high-demand retail establishments are brand-new, placed into operation since the current owner purchased the property. This once excellent location is now A+. These condominiums are located in a great location for lobbyists and others who work in Tallahassee for part of the year and who want to be in a prime downtown location without having to live in an extended-stay motel.
This is not a distress sale. In fact, it is quite the opposite. The opportunity for the buyer should be rather obvious during its due-diligence inspection.
The question that many buyers will want to ask relates to the obviously high vacancy, but a simple visual inspection will put this concern to rest. This has been a construction project for more than two years, and most people are not interested in living in a development with that much chaos and noise. Prior to renovations, this has always been a high-demand location and maintained better-than-market occupancy rates. With the revitalization of Magnolia drive (just down the street), the location has been significantly enhanced and when completed and well-managed should maintain very high occupancy rates.
This property can be held and operated as a for-rent holdings, or it can be sold in bulk or as separate condominiums units. A combination of these options could produce strong results for a buyer.
The prudent investor might consider a 5 to 7 year hold with the intent to sell individual condominium units when the supply of available condos in downtown Tallahassee has been exhausted. One such scenario shows an internal rate of return for the investor which exceeds 30%. (An analysis of such a buy/hold/sell scenarios has been created and the reports can be found below.
The following reports can be downloaded as pdf files by clicking on the corresponding link.