The Mt. Vernon Portfolio is offered at $2,999,995, representing an 8.99% going-in cap rate based on a T-12 NOI of approximately $269,000. Current average rents of $850/unit are well below the submarket average of roughly $1,200/unit, creating clear value-add upside.
A key highlight is the attractive assumable debt, including a $1,875,000 loan at 3.75% with the option to add a $650,000 supplemental loan at 6.50%, for a combined loan balance of $2,525,000. This creates a blended rate of approximately 4.46%, 84% LTV, and a projected 19.78% takeover cash-on-cash return.
Pro forma rents of approximately $1,270/unit support a projected Year-1 NOI of ~$287,000, a 9.58% pro forma cap rate, and ~22.93% cash-on-cash return, with additional upside from laundry income and converting the vacant Maryland Avenue unit.
The portfolio is located in a prime Mt. Vernon corridor near major dining, cultural, educational, medical, and transit anchors, including Lexington Market, the Walters Art Museum, Peabody Institute, UMMC Midtown, University of Maryland Baltimore, Johns Hopkins, Light RailLink, Metro SubwayLink, CityLink routes, and the Charm City Circulator.