Marcus & Millichap is pleased to present the Hilltop Portfolio, a scattered-site, mixed-use portfolio located in the Hilltop submarket of Columbus. The portfolio consists of 35 1-bedroom units, 1 single-family home, 4 retail spaces, 1 self-storage space, and 3 vacant lots. The asset is currently 93% occupied with 27,962 rentable sqft. on a total of 1.952 acres. The portfolio offers an opportunity to increase income through an utility implementation strategy that has began implementation within the portfolio. Also, the portfolio offers a potential investor a value-add opportunity with the commercial & self-storage space.
Current ownership of the Hilltop Portfolio has kept the property well-maintained as the owners invest time, energy, and effort into preserving the common areas. Current ownership is continuing to invest in the preservation of this asset by investing in the property as needed. Examples include updating boilers, windows, furnaces, plumbing, and exterior doors.
The Hilltop Portfolio has starting implementing an utility fee for the Gas & Water of $25 each. An incoming investor can implement a utility fee across the multifamily units and capture nearly $18,600 of additional income per year. Additionally, the owner currently pays electric for 13/35 of the multifamily units. An incoming investor can finishing implementing tenants paying electric resulting in an increase in NOI.
COMMERCIAL VALUE-ADD OPPORTUNITY
There are currently 3 retail spaces being leased month to month and 1 vacant space for a total of 4 Retail Spaces. Current retail occupancy in the local market is 78%. Current month to month leases sit on average $7.00/SQFT below market. By implementing a build out plan at nearly $280k at cost to the investor, and with proper marketing, it is estimated that you can recapture roughly $41,925 per year. The ROI at that rate is roughly %. Along with that opportunity is a similar opportunity with the single self storage space. The current tenant is on a month to month lease as well and sits on average $3.40/SQFT below market. With proper marketing, it is estimated that you can recapture roughly $4,200 per year.