Marcus & Millichap is pleased to present River Oaks Apartments, a 56 unit community located in Union County which is a part of the Illinois-Indiana-Kentucky tri-state area. This 30-county region consists of over 900,000 people with Evansville, Indiana being the principle hub. Economic activity in Union County is characterized by fossil fuel production (13.8%), Health care and social assistance (15.1%), and manufacturing (12.8%).
Current rents are well below market allowing an opportunity for an incoming investor to renovate units and provide quality housing for residents with estimated rental increase of 25%. Neighboring communities in the tri-state area with similar product are seeing rents over $200 higher than pro forma rents.
Renovations would consist of interior unit upgrades of $7500 which would include flooring, paint, bathrooms, and kitchens allowing for a $150 increase in rents. This equates to a 24% ROI on invested capital for renovations.