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|Number of units||66|
JLL (“Jones Lang LaSalle Americas Inc.”) is pleased to present the opportunity to acquire Elk Meadows (66 units) and Christiana Pointe (56 units) (the “Portfolio”) a 122-unit value-add portfolio offering situated 15 miles apart in Elkton, Maryland, and Wilmington, Delaware.
Significant Loss To Lease Across The Portfolio
As currently positioned, Elk Meadows and Christiana Pointe’s in-place rents trail the market average for comparable properties by upwards of $200 per unit. Prior to the implementation of a streamlined renovation program, new ownership can immediately capitalize on the below market in-place rents through an aggressive leasing strategy upon turnover, bridging the gap amongst competitors in the market.
Attractive Cash Flowing Portfolio
Elk Meadows and Christiana Pointe provide investors with two assets that offer an attractive going-in yield and upside potential to further enhance revenue through aggressive leasing strategies and a streamlined renovation program. The opportunity provides management efficiencies, allowing an investor to grow their portfolio in two higher yielding sub-markets along the I-95 corridor. Furthermore, the current debt capital market environment, specifically Fannie Mae and Freddie Mac along with the most aggressive bridge lenders, enable investors to achieve current cash-on-cash yields above historical precedent.
Dynamic Multi-Housing Market Fundamentals
Rental rates in the Cecil County submarket have increased by an impressive 8.5% over the past year, which significantly exceeds the average annual growth of 2.5% over the past decade further indicating new owner's ability to increase rental rates upon turnover.
New Castle County’s apartment market has proven resilient throughout the pandemic with occupancies remaining at 4.70%, below the market average of 5.50%. Furthermore, asking rental rates have increased 5.60% year over year as of 2Q21, outpacing 2020’s average of 3.10%.