The Washington Apartments: 16-Unit Multifamily

1002-1008 Central Ave. SW is an architectural gem designed by J.L. LaDriere during the early 20th century. The Washington Apartments were recorded in the NM State Register of Cultural Properties and the National Register of Historic Places in 1978 and 1982, respectively. The Victorian-style buildings exhibit classical period architectural components while offering modern efficiency improvements. For example, the Victorian “sash” windows are reinforced with additional panes for improved insulation. The units are accessed from the interior double-loaded central hallway and oak staircases.

New & Old: While the original balustrades, columns, Turkish clawfoot bathtubs, and other time-piece relics have been preserved, the building underwent a renovation in 1991. The then-owner insulated the sash windows, installed copper plumbing, replaced the electrical, and replaced half of the sewer lines with PVC material.

Amenities: The building amenities include 2-permit parking passes, interior storage, on-site laundry, and complimentary internet. In addition to the spacious floorplans, the interiors are equipped with garbage disposals, dishwashers, and some units include private porches.

Utilities: Each unit includes an electricity and gas meter, which are tenant responsibilities. The building is cooled via evaporative units and heated by in-unit forced-air gas furnaces. The owner includes water, sewer, and trash expenses in rent. However, there is an opportunity to implement a monthly Utility Reimbursement (RUBS) fee into tenant leases.

INVESTMENT HIGHLIGHTS
   Acquisition
- Cap Rate: 6.56%
- Gross Rent Multiplier (GRM): 10.48
- DSCR: 1.24 *70 LTV 6.45% Fixed.*
- Cash-on-Cash Return (Pre-Tax): 4.14% *70 LTV 6.45% Fixed.*
   Pro Forma: Year-End Two (2)
- Cap Rate: 8.52%
- Gross Rent Multiplier (GRM): 8.41
- DSCR: 1.61
- Cash-on-Cash Return (Pre-Tax): 10.47%
  Pro Forma: Year-Five (5)
- Year-End 5 Value Appreciation: +29.83% *6.15 Cap Rate*
- Pro Forma Pre-Tax IRR: 26.60% *5-Year Hold*
- Pro Forma After-Tax IRR: 21.19% *5-Year Hold*

Excellent Unit Mix: 100% 2 Bed-1 Bath
- Large Unit sizes: ± 965 (Avg.)
Desirable Location: Highly walkable
- ABQ BioPark & ABQ Country Club
- Raynolds Addition & Huning Castle
Low Rental Rates: 24.63% below market

NM & National Property Registers
- Early 20th century Victorian Architecture
Building Amenities:
- Projecting 2nd story private porches
- Interior entry, storage and laundry facility
- Private 2-car parking/unit