The Druid Apartments

Baltimore, MD

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The Offering

Offering Details

List Price $2,700,000
# of Units 21
Price/Unit $128,571
Average Rent $1,358
Cap Rate 7.47%

2028 Mt Royal Terrace | Baltimore, MD 21217

Harbor Stone Advisors is pleased to present the opportunity to acquire The Druid Apartments, a unique multifamily asset with value-add potential. Located in Reservoir Hill, the property is less than a 15-minute walk away from the Maryland Institute College of Art (MICA) and University of Baltimore. The Druid Apartments features (11) 1 Br-1 Ba, (1) 1 Br-1.5 Ba, (4) 2 Br-1 Ba, (2) 2 Br-1.5 Ba, and (3) 3 Br-2 Ba. Typical unit features consist of white appliances, wood cabinets, laminate countertops, engineered bamboo/carpet/ceramic tile flooring, and in-unit washer/dryers in some units. Current ownership completed an extensive renovation of the property in 2012 which included apartment upgrades, new roof and awning, refurbished lobby and corridors, replacement of 50% of the hot water heaters and 90% of heat pumps, and other projects.

Recently, the seller renovated two units with stainless steel appliances, new cabinets, granite countertops, and updated bathrooms. The opportunity exists to continue this renovation program on the remaining 19 units. Properties of similar vintage that have undergone renovations of a comparable scope are achieving rents at least $200 higher on average than the Subject property. Other value add opportunities include implementing a water reimbursement program upon renewal and/or new lease and monetizing the storage area in the basement. There are currently small storage lockers in the basement that are not utilized by current tenants. A new owner could convert that area into two or three large storage rooms, which would be more desirable to tenants.

Offering Highlights

Opportunity to Acquire a Multifamily Asset with Minimal Deferred Maintenance in Reservoir Hill

- Unit mix consists of (11) 1 Br-1 Ba, (1) 1 Br-1.5 Ba, (4) 2 Br-1 Ba, (2) 2 Br-1.5 Ba, and (3) 3 Br-2 Ba

- Typical unit features include white appliances, wood cabinets, laminate countertops, engineered bamboo/carpet/ceramic tile flooring, and in-unit washer/dryers in some units

- Current ownership completed an extensive renovation of the property in 2012 which included apartment upgrades, new roof and awning, refurbished lobby and corridors, replacement of 50% of the hot water heaters and 90% of heat pumps, and other projects

Ability to Create Value and Increase Rents Via Renovation Program

- Recently, the seller renovated two units with stainless steel appliances, new cabinets, granite countertops, and updated bathrooms; the opportunity exists to continue this renovation program on the remaining 19 units

- Potential to increase rents at least 15% based on nearby rent comparables

- Implement a water reimbursement program upon renewal and/or new lease

- Monetize the storage area in the basement by creating two or three larger storage rooms

Excellent Location in Reservoir Hill Near I-83; Less Than a 15 Minute Walk Away from MICA and UB

- Ranked a Walker's Paradise by WalkScore; various modes of public transportation are located less than a half mile away from property including the Light Rail and CityLink bus stops

- Located 1 mile away from Druid Hill Park, one of the largest green spaces in Baltimore City

- Major area employers nearby: Johns Hopkins University, Maryland Institute College of Art (MICA), University System of Maryland, University of Maryland Medical Center (UMMC) Midtown Campus

- Major area colleges nearby: MICA, University of Baltimore (UB), Coppin State University, Johns Hopkins University