40 UNIT Mid Rise

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Highlights: This complex is in the Cape Coral/ Fort Myers MSA in Lee County, Florida. Lee county consistently ranks amongst the top US counties for both population growth and job creation making it one of the most desirable relocation areas for retirees, job seekers and those wishing to start or expand a business.

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The complex consists of one five-story mid rise structure with a parking garage on the ground level. The first floor contains ten Class A small office suites. The remaining three floors are residential. The building has approximately 47,400 leasable square feet. The exterior structure was built in 2008 but due to the economic climate at the time no interior construction was completed until the project was restarted in 2014. Currently 30 units feature a 2-bedroom, 2 bath layout with 10ft ceilings, granite countertops, travertine flooring and showers and high-end appliances and fixtures. The other ten units which occupy the first floor were completed to function as office space although they maintained completed kitchens and two full baths. The property is not performing to its highest potential because the demand for Class A small office space in this market is moderate, while the demand for rental housing is extremely high.

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Repositioning: The complex will be acquired for $ 5,960,000 and an additional $72,000 will be invested in converting the ten office units back to residential units. By converting the 11,850 square feet from office back to residential space the monthly per square rental rate will increase .45 per square foot which will translate into an annual increase of $63,990.00 in additional rental income. The construction phase should be completed within 90 days, Inclusive of permitting and inspections. Due the high demand for residential rental units in the area the units should be absorbed quickly.

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