3245-3261 N Geronimo Ave
Tucson, AZ 85705

NOI - $73,769 ($103,980 - $30,211) Price - $925,000 Cap Rate At Full Price - 7.98% (Pro Forma 8.87 % Cap when Including the final unit being finished & receiving $750/mo., with a new $82,049 NOI) This off market 12 plex is known as the Pebbles Pond Community. The property is nearly completely turn key other than the not renting storage unit. It's uniquely desirable to renters and much nicer than others like it in the area. This is including that most of the units are much larger than the usual apartments nearby and have many of upgrades such as granite counter tops with newer updated looking interiors. Nearly all interiors have good looking newer tile flooring and paint as well as newer vanities, plus newer appliances and other. Given these units are much larger than most apartments, are constructed of solid red brick and feel more like homes they are much more desirable as rentals. This is why the property has been at 100% occupancy and has no vacancy at all for 2+ years. There is plenty of off street parking as well as the owner maintains a pleasant common area with citrus tree's, tables and a BBQ at the front common area of the property. The owner bought this six years ago when it was all boarded up and not renting. Nearly everything has since been upgraded, including exterior and all interior remodels but one. New roofs have been given including complete re roofing done on the 5 and 3 plex buildings, while with a new metal roof given the 4 plex. Re roof coatings were just done very recently on 5 and 3 plex building, while all new AC's plus new complete new electric and plumbing was given. The owners father who is an electrician did the complete electrical system upgrade. One unit has been being used as a storage facility but can be made to be rent ready for $750 again soon. The owner has been getting the storage unit prepared to be rented out though it still needs things including drywall, flooring, and some other such as appliances and light fixtures which is expected to require about 30-60 days. The property acts more like a 15 plex presently, due to it having the 4 additional RV spaces that are renting out for $300/mo. average now. There are 15 total units receiving income right now including the 4 RV spaces, with the 11 of the 12 regular (not RV spaces) units always renting. The owner has carefully vetted the RV renters, they are not living that way out of economic necessity and are very permanent. The RV's are separately metered. The owner doesn't have to do anything for the RV tenants while from them while he receives an additional $13,000 per year income at present. The property is located only 3 miles north of the U of A, just west of the 1st Avenue & Ft. Lowell intersection in the north to north-west central part of Tucson. The Pebbles Pond Community consists of four contiguous, separate tax parcels that are 1.06 acres in total. There are three street addresses that are zoned R-3. All buildings were built of red brick between 1954-66. 3261 Geronimo is a '66 built 4 plex with 2000/ft. total. 3255 Geronimo is a subdivided home that has 5 rental units plus a storage unit, which is '54 built with 4,734/ft. 3245 Geronimo has 3 rental units with 1650/ft. The composition is 10 1/1's (1 is a 1/1.5) + 1 2/2 & 1 2/1 rental unit, + 4 RV spaces in back that get an additional $1,100/month combined, as of February '20. The rents can be increased at least $50-75/mo. or more on many of the 1 Br's and up to $75/mo on the RV spaces, per my professional property manager contact. There is an onsite laundry room facility with two new look washers + two dryers. The laundry facility generates additional income of $250/mo. Regarding the utilities the owner pays for water, but bills back / is paid back for the electricity. He pays directly to the electric utility on behalf of the renters before being reimbursed that the following month by tracking individual units usage. The water isn't separately metered and the owner pays about $500/mo. for that. The gas isn't separately metered and some units have gas ranges. The owner estimates he has $200/mo. in gas expense. There is $200/mo. total combined of expense for common area exterior electric, including for the laundry facility plus landscaping upkeep costs. The owner says he doesn't have or pay for insurance presently. Other 12 plex's of a similar age I've sold here recently, such as 4430 E Pima, had an about $3,000/yr cost for the insurance. Income - $103,980/yr. _________________ $8,415/mo. Current Rent x 12 = $100,980 + $3,000/yr. Additional Income for the on site laundry facility Expenses - $30,211 (*Only if including 8% of the expected gross rents added in to actuals re. property mgt.) __________________ Tax - $3,547/yr. ('18) Insurance - No insurance presently Property Mgt. - 0 this is self managed, or else $8,078/yr. if @ 8% Utilities - $8,400/yr. ($500/mo. water + $200/mo avg. gas expense) Maintenance / Supplies - $7,200/yr. ($600 per unit per year est.) Miscellaneous Expenses (Exterior electric + Landscaping) - $2,400/yr. Current actual rents are the following: (This is including a few increases already agreed to by renters, that are scheduled to take effect 2/1/2020) 3261 is a 4 Plex - All are 500/ft. 1/1's @ 1 x $575/mo. + 2 x $525/mo. 1 x $450/mo. = $2,075/mo. Current Rent* 3255 is 5 Units - Large 1/1 is 800+/ft. @ $850/mo., 1/1 600/ft. @ $680, 2/2 1200/ft. @ $850, 2/1 1200/ft. @ $860, = $3,240/mo. Current Rent* (The $3,240/mo. rent for this 3255 building does not include the 1/1 600/ft. unit being used as storage which will get $750/mo. when completed) 3245 is 3 Units - 1/1.5 is 650/ft. @ $750 , 1/1 600/ft. @ $650, 1/1 500/ft. @ $600/mo. = $2,000/mo. Current Rent* RV (4) Rental Spaces = $1,100/mo. Current Rents as of 2/1. Size of units in Sq. Ft. - 500/ft. - 1200/ft. Private yards - Yes Washer Dryer Hookups - In 3 units Covered parking - 2 units have this AC's - Yes all but 1