New Colony Apartments is a 180-unit multifamily community located in the city of Lauderhill, Florida in the heart of Broward County. The property was built in 1974-1975 of concrete block construction, painted stucco exteriors, with flat roofs and sits on 7.19 acres of land.
The community is located at 5420 NW 27th Street, just East of NW 55th Ave., South of Oakland Park Blvd.,West of Florida’s Turnpike, North of Sunrise Blvd., with ease of access to I-95, I-595, I-75 and Sawgrass Expressway. The neighborhood consists primarily of condominiums, multifamily buildings and single-family homes that recently have sold for $300k+. With its central location, it provides access to 65 Million square feet of office space within a 30 minute drive and major employment hubs such as Memorial Healthcare
System (13k Employees), Port Everglades (13k Employees), Fort Lauderdale-Hollywood International Airport (12k Employees) American Express (3.5k Employees) and many others.
The subject property consists of (18) two-story buildings with an attractive unit mix of (40) spacious one-bedroom/one-bathroom units measuring approximately 800 sq./ft. and (140) large two story townhouse style two-bedroom/one-and-a-half bathroom units measuring approximately 1,000 sq./ft., totaling roughly 175,466 rentable square feet. All units offer fully equipped kitchens, central HVAC and individual water heaters. Common area amenities include on-site leasing office, two swimming pools, two on-site laundry facilities for additional income and ample parking for residents and their guests. Rent includes water sewer & trash. Residents pay for their own electric.
The new owner must assume a Freddie Mac/Walker Dunlop Loan of $17,080,000 and fund a replacement reserve account with the lender of approximately $500,000. The loan has an interest only period through June 2023 and the opportunity to add a supplemental loan to the capital stack. New Colony Apartments provides an investor the opportunity to purchase an asset where the current owner installed granite countertops in 80% of the units and eight of these with vinyl plank flooring in the common areas, which are achieving a premium rent of $1450+ on new leases. By implementing an interior renovation program and completing the remaining units to the same finish level, rents can raise rents $150 above in place effective rents, representing a 10.97% increase in rents and a proven roadmap to a double digit cash-on-cash return day one
of acquisition, with a high teen IRR.
