Somerset Apartments 8059 Somerset St
12 Unit Apartment Building $1,790,000 ($149,167/Unit) 6.81% Cap Rate Hummelstown, PA 17036
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EXECUTIVE SUMMARY
12 Unit Apartment Building + 6 Storage Units For Sale By Owner. Outstanding Condition in Nice Area.
For Sale URL: https://www.ad26.com/fsbo.htm
* Value Add: Rents are more than $100 (average) below market value.
That's $14,400 more cash per year and a $205,700 instant increase of property value at a 7% cap rate.
* All have VERY LOW vacancy rates (0% since 2009): Not one day of vacancy in any of the 12 apartments since 2009.
* Rents are below market value for comparable apts. Most 2-Bedrooms are in $1100's, with comparables in the $1300's.
* Very low turnover. 20-25% tenants are nurses/doctors (from the Penn State Hershey Medical Center which is nearby).
* High quality tenants - outstanding credit scores are required at this location and lack typical tenant problems.
* Not one late rent for over 7 years due to outstanding tenants.
* 5 of 12 Tenants are long term (6+ years).
* No deferred maintenance. Very well maintained building and grounds.
* Located in Swatara Township, despite 17036 zip code: Swatara Township is a Harrisburg suburb Township.
* No late rents during Covid-19. Rents continued to rise during the 2008 Great Recession despite national R/E downturn.
* Located on a beautiful lot with plenty of trees and a public park with walking path next door. Lot size = 0.85 acres.
* Single family home neighborhood.
* The greater Harrisburg region is a very high demand rental area; Also one of the strongest economies in the state.
* Harrisburg area was voted the best place to retire last year:
https://realestate.usnews.com/real-estate/best-places-to-retire/articles/what-makes-harrisburg-pa-the-best-place-to-retire
* Harrisburg area was ranked #1 for the hottest small rental markets in the country in 2023 and #7 in 2024:
https://www.rentcafe.com/blog/rental-market/market-snapshots/most-competitive-rental-markets-this-year/
* An average of 14 prospective renters compete for each vacancy in Harrisburg:
https://www.pennlive.com/news/2023/12/harrisburg-area-rental-market-remains-painfully-tight-as-14-would-be-tenants-circle-every-apartment.html
Misc:
* Tenants pay for electricity only; water, sewer, trash is included in rent. Water can be metered for each apartment if meters are installed.
* All leases are one year in duration.
* All units have Central Air/Central Heating and Dishwashers.
* (8) 2-bedroom models have washer/dryer hookups. (4) 1-bedroom models have coin-op laundry on ground floor.
* 2-bedroom apartments and rooms are of generous size (about 1000 s.f.). Include double-sink vanities in bathrooms.
For Sale URL: https://www.ad26.com/fsbo.htm
* Value Add: Rents are more than $100 (average) below market value.
That's $14,400 more cash per year and a $205,700 instant increase of property value at a 7% cap rate.
* All have VERY LOW vacancy rates (0% since 2009): Not one day of vacancy in any of the 12 apartments since 2009.
* Rents are below market value for comparable apts. Most 2-Bedrooms are in $1100's, with comparables in the $1300's.
* Very low turnover. 20-25% tenants are nurses/doctors (from the Penn State Hershey Medical Center which is nearby).
* High quality tenants - outstanding credit scores are required at this location and lack typical tenant problems.
* Not one late rent for over 7 years due to outstanding tenants.
* 5 of 12 Tenants are long term (6+ years).
* No deferred maintenance. Very well maintained building and grounds.
* Located in Swatara Township, despite 17036 zip code: Swatara Township is a Harrisburg suburb Township.
* No late rents during Covid-19. Rents continued to rise during the 2008 Great Recession despite national R/E downturn.
* Located on a beautiful lot with plenty of trees and a public park with walking path next door. Lot size = 0.85 acres.
* Single family home neighborhood.
* The greater Harrisburg region is a very high demand rental area; Also one of the strongest economies in the state.
* Harrisburg area was voted the best place to retire last year:
https://realestate.usnews.com/real-estate/best-places-to-retire/articles/what-makes-harrisburg-pa-the-best-place-to-retire
* Harrisburg area was ranked #1 for the hottest small rental markets in the country in 2023 and #7 in 2024:
https://www.rentcafe.com/blog/rental-market/market-snapshots/most-competitive-rental-markets-this-year/
* An average of 14 prospective renters compete for each vacancy in Harrisburg:
https://www.pennlive.com/news/2023/12/harrisburg-area-rental-market-remains-painfully-tight-as-14-would-be-tenants-circle-every-apartment.html
Misc:
* Tenants pay for electricity only; water, sewer, trash is included in rent. Water can be metered for each apartment if meters are installed.
* All leases are one year in duration.
* All units have Central Air/Central Heating and Dishwashers.
* (8) 2-bedroom models have washer/dryer hookups. (4) 1-bedroom models have coin-op laundry on ground floor.
* 2-bedroom apartments and rooms are of generous size (about 1000 s.f.). Include double-sink vanities in bathrooms.
FINANCIAL SUMMARY (ACTUAL - 2024) |
ANNUAL | ANNUAL PER SF |
---|---|---|
Gross Rental Income |
$158,085
![]() |
$14.26
![]() |
Other Income |
$597
![]() |
$0.05
![]() |
Vacancy Loss |
-
![]() |
-
![]() |
Effective Gross Income |
$158,682
![]() |
$14.31
![]() |
Taxes |
$9,625
![]() |
$0.87
![]() |
Operating Expenses |
$18,164
![]() |
$1.64
![]() |
Total Expenses |
$27,789
![]() |
$2.51
![]() |
Net Operating Income |
$130,893
![]() |
$11.80
![]() |
PROPERTY FACTS
Price | $1,790,000 |
Price Per Unit | $149,167 |
Sale Type | Investment |
Cap Rate | 6.81% |
No. Units | 12 |
Property Type | Multifamily |
Property Subtype | Apartment |
Apartment Style | Low Rise |
Building Class | C |
Lot Size | 0.85 AC |
Building Size | 11,088 SF |
Average Occupancy | 100% |
No. Stories | 2 |
Year Built/Renovated | 1975/2020 |
UNIT AMENITIES
- Dishwasher
- Microwave
- Double Vanities
- Eat-in Kitchen
- Double Pane Windows
- Large Bedrooms
SITE AMENITIES
- 24 Hour Access
- Smoke Detector
UNIT MIX INFORMATION
DESCRIPTION | NO. UNITS | AVG. RENT/MO | SF |
---|---|---|---|
2+1 | 8 | - | 1,000 |
1+1 | 4 | - | 600 |
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PROPERTY TAXES
Parcel Number | 63-070-058 | Total Assessment | $331,500 |
Land Assessment | $148,100 | Annual Taxes | $9,625 ($0.87/SF) |
Improvements Assessment | $183,400 | Tax Year | 2024 |
ZONING
Zoning Code | Multifamily |