17 Belvidere St
Nazareth, PA 18064
Multifamily Property For Sale · 16 Units

The Belvidere Apartments is a luxury 16 unit “New York style” multifamily building located in downtown Nazareth, PA acquired by DLP in August 2015. Nazareth is located in Pennsylvania’s Lehigh Valley, a Philadelphia area exurb currently experiencing explosive rental growth. Capital Improvements: Capital Improvements: Belvidere Apartments was a significant complete renovation over $1,100,000 in 2015-2016. This project included zoning approval to convert to 16 apartments; full engineering and architectural plans, and a nearly complete re-framing of the entire building. Each unit was essentially a complete total tear down, gut and rebuild with all surfaces, finishes, and appliances being replaced and upgraded. New flooring, all new windows, all new kitchens, all new plumbing, all new bathrooms, updated electric, all new lighting, all new doors, etc. In addition, exterior was redone as well with stucco and stone. The end result was a stylish, attractive building with modern, well-appointed apartments throughout. Performance Lease-Up: Belvidere Apartments has been a very successful endeavor for DLP both in terms of generating positive cash flow and drastically increasing asset value. The building leased up extremely quickly and at rents above pro-forma. The rent roll for the community sits currently at $13,200 with an average rental rate of $825 per unit. Quality of Tenants: Every resident at Belvidere Apartments has passed a strenuous criminal background check and meet stringent credit and rental history requirements. Additionally, all renters are required to earn over 3 times their monthly rent and must adhere to a thorough set of rules and regulation. Opportunity: Due to a desire to do a full lease up of 16 units in a relatively small market all at once, the rents are currently 5-10% under market value. With the strong population and job growth as well the highly desirable schools in Nazareth along with limited supply of apartments the annual rent growth is expected to remain very strong, with a 5-8% annually projected to increase. The fact that all mechanicals, appliances, windows, flooring, etc are all less than 2 years old will keep repair and maintenance cost minimal. In addition, the tenants are responsible for all utility costs other than trash. With no parking lots or yard to maintain there are no landscaping or snow removal expenses keeping expenses extremely efficient and driving strong cash flow.