Morrisville, PAProperty Type: Multifamily
Size: 32 Units
- 32-Unit Townhouse Community in Morrisville, Bucks County, Pennsylvania
- Spacious Two- and Three-Bedroom Townhomes Averaging 1,150 SF
- Upside in Rents - Current Rents are More Than $0.25/SF Below the Market
- Outdoor Space For Each Unit with Select Units Featuring Large Backyards
- Extensive Recent Capital Improvements Include New Roofs, Resurfaced Parking Lot, New Fencing & More
- Excellent Financing Available
On behalf of ownership, Marcus & Millichap is pleased to present for sale Capital View Court - A 32-unit townhouse community located in Morrisville, Bucks County, Pennsylvania.
The unit mix at Capital View Court includes 1 one-bedroom unit, 30 two-bedroom townhouses, and 1 three-bedroom townhouse. The spacious townhouse units, which average 1,150 square feet, each feature one-and-a-half bathrooms. The townhouse units, which feature private entrances and outdoor space, are unique in the marketplace and are in high demand.
Capital View Court has been nicely maintained by the current ownership. Recent capital improvements include all of the roofs being replaced in the last 6 years, resurfacing the parking lot in 2018, and new fencing throughout the property. Many of the units have had new appliances installed, and several units have upgraded finishes, including carpet, tile, and kitchen cabinets. All units have private entrances, and there are laundry facilities on-site.
While current ownership has done a great job of managing the property and maintaining consistently strong occupancy, the rents have not kept pace with the market. The average in-place rent on the two-bedroom townhouses (30 of 32 units) is only $1.20/SF, while the market average for two-bedroom units in the Morrisville market is $1.46/SF (even with tenants paying heat in 40% of the comps). Recent leasing activity at higher rents has proven that the rents are achievable. A new investor would have the ability to increase rents to the market averages and generate a Year 1 cap rate north of 6.75%. Utilizing new bank or agency debt at historically low interest rates will enhance the investor’s strong returns.