Somerset Apartments 8059 Somerset St

12 Unit Apartment Building $1,790,000 ($149,167/Unit) 6.81% Cap Rate Hummelstown, PA 17036

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.

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

PROPERTY TAXES

ZONING

Zoning Code Multifamily
  • Listing ID: 34580573

  • Date on Market: 1/23/2025

  • Last Updated:

  • Address: 8059 Somerset St, Hummelstown, PA 17036