Language and Region
Currency

This feature is unavailable at the moment.

We apologize, but the feature you are trying to access is currently unavailable. We are aware of this issue and our team is working hard to resolve the matter.

Please check back in a few minutes. We apologize for the inconvenience.

- LoopNet Team

You must register your contact information to view secure information on this listing.

Email*

Please enter a valid email address.

Note: To send this property to multiple individuals, insert a semi-colon between each recipient's email address.

Send me a copy

962 characters remaining

LoopNet has taken a strong stance against the practice of sending unsolicited commercial emails, also known as "spam." Please send these emails only to people you know who would be interested in this property. If someone asks you not to send these emails to them, please comply.

thank you

Your email has been sent!

2095 La Palma St

36 Unit Block of Flats £1,795,723 (£49,881/Unit) 6.85% Net Initial Yield San Benito, TX 78586

.mosaic-column{display:inline-block!important;height:100%!important;width:auto!important}.mosaic-tile i{display:none!important}.mosaic-tile img{height:100%!important;width:auto!important}

Investment Highlights

Performing, 1994 Class B asset
Located in a Qualified Opportunity Zone
Pro Forma Cap Rate - 7.89%

Historically High Occupancy - Currently 100% Occupied
Value-add Opportunity to Raise Rents $95/month with Small Cosmetic Updates
Pro Forma IRR - 18.93%

Executive Summary

The offering is a performing thirty-six (36) apartment complex in San Benito, Texas. It is 100% occupied and is located within an opportunity zone.
The Class-B property was built in 1994. Per the County Appraisal District, the building square footage (sq ft) is approximately 23,816 plus 729 sq ft in the laundry center and 341 sq ft in the office. The lot is approximately 52,272 sq ft. The roof is pitched with composition shingles. The foundation is slab. The HVAC is provided by individual central HVAC systems. All units have individual electric hot water heaters. Electricity is individually metered and is paid for by the tenants. Water is master-metered. Gas is only for the laundry care center. Parking is off-street.
The apartment complex cash flows day one, it also offers a value-add component. The manager
believes rents can be raised $95/month with some minor interior cosmetic updates (flooring, paint
kitchen cabinets). Her estimated budget is +/- $2,500 - $2750/unit. There may be some older
3.5-gallon flush toilets that could be upgraded to reduce water expenses.
The property is located within an opportunity zone. The potential tax benefits are:
• Deferral of Capital Gains - Investors can defer tax on any prior eligible gain if the gain is reinvested in a Qualified Opportunity Fund (QOF) within 180 days. The deferral lasts until the earlier of the date the investment is sold or exchanged, or December 31, 2026, with taxes payable in April 2027
• Exclusion of Gains - If the QOF investment is held for at least 10 years, any additional gains from the QOF investment are excluded from taxable income. This means no capital gains tax on the appreciation of the QOF investment when it is sold or exchanged after at least 10 years
According to the Realtors Property Resource Trade Area report for San Benito, TX 78586:
• The Average Household Income is $61,508
• The Average Disposable Income is $50,742
• The Median Household Income is $40,870
• The median age is 30.9 years
• The average household size is 3.33
• The ZIP code has a Median Estimated Home Value of $197,830, which has increased 11.3% over the last twelve months

Financial Summary (Pro forma - 2024)	Annual	Annual Per SF
Gross Rental Income	£233,608	£9.81
Other Income	£5,962	£0.25
Vacancy Loss	£7,008	£0.29
Effective Gross Income	£232,562	£9.76
Taxes	£34,477	£1.45
Operating Expenses	£56,442	£2.37
Total Expenses	£90,919	£3.82
Net Operating Income	£141,643	£5.95

Financial Summary (Pro forma - 2024)

Gross Rental Income
Annual	£233,608
Annual Per SF	£9.81

Other Income
Annual	£5,962
Annual Per SF	£0.25

Vacancy Loss
Annual	£7,008
Annual Per SF	£0.29

Effective Gross Income
Annual	£232,562
Annual Per SF	£9.76

Taxes
Annual	£34,477
Annual Per SF	£1.45

Operating Expenses
Annual	£56,442
Annual Per SF	£2.37

Total Expenses
Annual	£90,919
Annual Per SF	£3.82

Net Operating Income
Annual	£141,643
Annual Per SF	£5.95

Property Facts

Price	£1,795,723	Building Class	C
Price Per Unit	£49,881	Lot Size	1.20 AC
Sale Type	Investment	Building Size	23,816 SF
Net Initial Yield	6.85%	Average Occupancy	100%
Gross Rent Multiplier	8.62	Number of Floors	2
No. Units	36	Year Built	1994
Property Type	Residential	Parking Ratio	1.89/1,000 SF
Property Subtype	Apartment	Opportunity Zone	Yes State officials designate a portion of qualified Census Tracts to be Opportunity Zones. Certain investments in Opportunity Zones may be eligible for preferential tax treatment.
Apartment Style	Low Rise

Price	£1,795,723
Price Per Unit	£49,881
Sale Type	Investment
Net Initial Yield	6.85%
Gross Rent Multiplier	8.62
No. Units	36
Property Type	Residential
Property Subtype	Apartment
Apartment Style	Low Rise
Building Class	C
Lot Size	1.20 AC
Building Size	23,816 SF
Average Occupancy	100%
Number of Floors	2
Year Built	1994
Parking Ratio	1.89/1,000 SF
Opportunity Zone	Yes State officials designate a portion of qualified Census Tracts to be Opportunity Zones. Certain investments in Opportunity Zones may be eligible for preferential tax treatment.