Villa Palms Apartments is a market-rate apartment rental community consisting of 105 units located in the growing market of Sebring, which is in Highlands County, Florida. Villa Palms is set on two separate parcels that are located on the North and South sides of Villa Road. The two parcels consists of 22 buildings with 15 on the northern part of the property being constructed in 1979 and the 7 buildings on the southern portion being constructed in 1982. The entire property sits on a total of 11.03 acres and includes a fully renovated leasing office, clubhouse and laundry. The unit mix is compromised of 77 one-bedroom/one-bathroom units along with 28 two-bedroom/one-bathroom units. The one-bedroom units are approximately 627 square feet while the two-bedroom units average 776 square feet per unit. The property was formerly a USDA regulated property that switched to market-rate upon the last sale. Currently, a large percentage of the tenants receive a voucher for payment from the USDA while new tenants are all market-rate. Please contact a CapRate CRE Advisor to discuss this further.
The current owner has gone to great lengths to renovate and update the property throughout since purchasing the asset. Having spent nearly $1M within the past 10 months, the property shines head and shoulders above the competition with renovations that include, but are not limited to, new metal roofs on all buildings ($350,000), a freshly paved and blackened parking surface ($133,000), lush landscaping and irrigation updates (over $150,000), fencing throughout the property ($25,000), new flooring, backsplash, appliances and more in various units ($100,000), a fully upgraded leasing office, clubhouse and laundry that would rival many higher end assets ($80,000). The property provides ample parking and designated smoking areas for tenants. Due to these renovations, the property is best-in-class in this market and upside remains in rental increases.
