Sterling Hills Apartments
Sterling Hills Apartments – stabilized acquisition and reposition
Acquired July 2019
118 single story 2 bedroom rental homes
The property had been owned and managed by a local family who was the original developer and had become complacent with revenue. The property had no marketing budget or on-line web presence. The unit rents were severely under market as they are essentially single family patio homes catering to retirees and empty nesters, which make up the largest demand drivers in the market.
- 118 units
- Indiana, PA
- 1 story units
- One story living for retirees and those looking to downsize their homes
- All units have their own integral garage and in unit laundry
- 2 bed and 1.5 bath
- Some units have a basement for extra storage
- The acquisition was financed with a permanent loan via Freddie Mac for a 12 year term with 30 year amortization and interest rate of 4.89%.
- After the first 24 months of operations, revenue grew 18% from $90,650 per month at closing to $107,089 without increasing turnover or operating expenses.
- Even with the revenue growth, the property still enjoys a resident retention rate of over 85%.
- In the third year of operations, the property was generating over 15% annual cash on cash yield to investors.