The Melrose Midtown 775 Melrose St

The Melrose Midtown Apartments in Memphis, TN is a stabilized, recently renovated, mid-rise multifamily property with 94 units. The property is higher-end and has won several awards. It looks and feels like a nice condominium with higher-quality finishes and amenities, as well as tenant RFID electronic access that allows them to simply drive into the secured, gated environment. The tenant base is also notable, with a very respectable average FICO score. The property has upside, as well as discussed below.
The Melrose is located in the Midtown/Central Gardens submarket, one of the best in Memphis. The Melrose is walking and/or easy biking distance to the Medical District and a short drive to the universities and most major employers. A significant percentage of the property's tenants are professionals who work in the Medical District, including at St. Jude Children's Hospital, Le Bonheur Children's Hospital, Methodist University Hospital, and UT Health System.
The Melrose has also been the winner of the “Memphis Most” prize for Best Apartment Community (several years in a row). The property won the Diamond Achievement Award from the Greater Memphis Apartment Association for best Mid-Rise / High-Rise renovation.
The Melrose is fully gated with wrought iron and a main entry gate that was custom-designed in ornamental iron. The property's occupancy is usually excellent, with some seasonal fluctuation. Of the units, 85/94 have in-apartment washer-dryers, not just hookups. Those appliances are owned by the Seller and naturally also included in the sale.
Please note that not every unit has an Island kitchen, only 26. The property also has a recently-installed full sprinkler system, which significantly reduces insurance costs. The system has an electric fire pump and a new six-inch sprinkler water pipe from the city. The pool was also renovated and has a new concrete deck, new pump, new decorative waterline tile, epoxy barrier coats, and propane grill for tenant use. All 129 bathrooms were fully renovated with Kohler toilets, copper piping, new plumbing fixtures, and full marble tile in bathtubs and showers.
The first floor was renovated to a higher standard, and features approximately 10-foot ceilings, larger kitchens, huge showers, and townhouse style patios with parking directly in front. Throughout the Melrose, the kitchens have all-stainless appliances and some have side-by-side refrigerator freezers where space was available. The seller installed kitchen backsplashes in all units in 2023.
There is potential upside and value-add for whomever acquires it. A total of nine large two-bedroom units can potentially be split, bringing the property to 101 units. There is also nearly 5,000 square feet of space at the ground level, some of which could also potentially be turned in less-expensive walk-out units. The present owner has already tested the splitting of upper-level units. They successfully split 19. The splits increased rents significantly. There is also value-add upside to potentially reskinning the building in the Seller's opinion, and the Seller has drawings he can share. The current seller is also not using software to dynamically adjust rents. They are also not currently permitting short-term rentals, which also potentially increases revenue.
All units had their windows replaced in 2022. Interested buyers are asked to make an offer. The sale includes two websites used for marketing, all staging furniture, and furniture in several units that are furnished.
The property is available to tour by reservation only. The property is being sold "as-is." Please note that 2024 NOI will be slightly less following expiration of the last Covid-19 leases and higher marketing costs, but it will still be impressive.