Marcus & Millichap is pleased to present Coral Club Apartments, a 100-unit apartment complex located in southern Fort Wayne, Indiana. The Coral Club Apartments offer the coveted value-add opportunity where the property has sufficient scale to support its own management and maintenance staff.
Built in 1990, the property consists of 8 buildings with all-brick construction. One of the buildings houses a leasing office, laundry facility, kitchen for employees, and storage areas. The remaining 7 buildings house 100 residential apartment units. The unit mix consists of 68 2-becroom/2-bath units and 32 3-bedroom/2-bath units. 36 of the 2-bedroom units are deluxe units with larger floor plans.
Extensive renovations of the property began in 2014. Most of these improvements were completed in 2015, with a few being finished in 2019. These renovations include brand-new dimensional shingle roofs; all new double-hung windows; all new fiberglass entry doors; all new interior doors; all new hot water tanks; all new HVAC (with a full 10-year manufacturer’s warranty which began upon completion in 2019); upgraded electric to 125 amps; all new pex plumbing; all new solid-oak kitchen cabinets; all new countertops; all new bathroom vanities, all new porcelain tile flooring in kitchens, bathrooms, and entries; all new appliances, all new closet organizers; parking lot resurfacing; the installation of 129 surveillance cameras, all digital with NVRs; and more. A complete list is found on page 10.
The Coral Club Apartments has optimal occupancy history. As of December 2019, the property is 95% occupied. Of the 5 vacant units, one is a 2-bed/2-bath deluxe unit which is used as a model unit. One of the other vacancies is an owner’s unit the current owner uses to stay in when visiting the property. The property continually has a wait list of future tenants who have already submitted an accepted application and paid a non-refundable $250 hold fee. With a pipeline of qualified tenants, the average unit is only vacant for 5 days before the next tenant is moved in. On an annual basis, the property has an effective occupancy which exceeds 95%.
Despite such impeccable occupancy, the property is lacking in community amenities. The ability to add desirable amenities, plus an effective annual occupancy greater than 95%, suggests the rents at Coral Club are not yet at their full potential. Potential community amenities which could be added include a fitness center, bark-park, and play-ground. Furthermore, when tenants move-out, the #1 reason given is the lack of in-unit washers & dryers. The plumbing already exists for in-unit washer & dryer hook-ups. If these were added to the units, the current laundry facility could be converted to a fitness center. There is ample green space at the property for a bark-park and playground.
The Coral Club Apartments provides prospective investors with a rare-combination: to acquire a stabilized property with zero deferred maintenance and excellent historical performance, where there is still opportunity to add value by providing more community amenities and increasing rents.
