For Sale
$1,400,000

302 Elm StReading, PA 19601

11-Unit Value-Add Opportunity

Overview

Added:
Dec 11, 2024
Days on market:
113
This exceptional investment opportunity presents a portfolio of three multifamily buildings totaling 11 units, situated in Reading, Pennsylvania's Callow Hill district. The properties, located at 302 N. 5th St, 427 Elm St, and 439 Elm St (all within close proximity for efficient management), offer a compelling value-add proposition. Currently boasting 100% occupancy, the portfolio generates a current NOI of $79,613, with a pro-forma NOI projected at $103,013, reflecting a significant upside potential. The buildings, constructed in 1900, are classified as Class C and sit on fee simple ownership. The asking price is $1,400,000, translating to $127,273 per unit. With below-market rents and a substantial number of month-to-month tenants, there's significant room for rental increases. The property benefits from its location near Alvernia University's new campus, presenting a strong opportunity to transition into student housing. Furthermore, the area enjoys good demographics and strong housing demand, complemented by the nearby 5th Street highway's retail and franchise presence. The permitted zoning is R, and owner financing may be available. This portfolio represents a rare assembly of units in the Callow Hill district, offering a unique chance for significant returns. The current cap rate stands at 6.40%, with a pro-forma cap rate projected at 7.36%. This is a first sale in over 17 years, with the current owners having operated and maintained the properties.

Highlights

  • Three multifamily buildings (11 units total) in Reading, PA's Callow Hill district, offering a value-add opportunity. First sale in over 17 years, with long-term owner occupancy.
  • Rare assembly of 11 units in the desirable Callow Hill district.
  • No rent control; below-market rents allow for immediate increases with numerous month-to-month tenants.
  • Value-add potential by transitioning to student housing near Alvernia University's new campus.
  • Significant upside potential due to below-market rents (20-30% below market) and high percentage of month-to-month leases.
  • Strong demographics and high housing demand in the area.

Property Details for 302 Elm St

Property type
Apartment buildings
Class
C
Year Built
1900
Buildings
3
Units
11

Location Insight

City
Reading
County
Berks
State
Pennsylvania
Latitude
40.3402084
Longitude
-75.9280068
302 Elm St, Reading, Pennsylvania

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302 Elm St
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