Springfield Valley Apartments

Compelling Value-Add Opportunity

• To align the Property with the neighboring competitive set, an investor is presented with the opportunity to implement a comprehensive renovation program across the remaining 55 classic units and capitalize on proven rental premiums upwards of $120/unit.
• Moreover, the East/West Buildings feature community washers and dryers on second and third floors, providing new ownership the opportunity to evaluate the installation of in-unit washers/dryers and capitalize on additional rental revenue.
• Springfield Valley differentiates itself from its competitors through its exceptional construction quality, which includes central air conditioning, refinished hardwood floors, and rubber pitched roofing.
• Notably, all studio units feature private entrances.
• Select one- and two-bedroom apartments offer vaulted, cathedral ceilings.
• Further, current ownership is paying all costs related to Water and Sewer at the East and West buildings. An investor is provided the opportunity to implement a resident RUBS program in these buildings and recapture 85% of the expense.

Recently Completed Capital Expenditures

• Current ownership has meticulously maintained the Property for over 10 years and has invested over $1 million to address deferred maintenance items including central HVACs, various appliance package upgrades, refinishing and sanding the hardwood floors, bathroom fixtures/vanities upgrades, installing a high-efficiency boiler in the Studio building, and various plumbing replacements.
• Further, ownership replaced the roof of the East building in 2017 and is in the process of replacing the roof on the Studio building. At closing, 2 out of the 3 roofs will be complete with transferrable warranties on each, allowing an investor to focus their efforts on value-add renovations and maximizing rental revenue.

Positive Leasing Momentum 

• Per the latest lease trade out report, new leases and renewals signed between 2/1/2024 and 4/30/2024 are averaging an overall increase of 3.9%, emphasizing the consistent organic rent growth at the Property.

Strong Submarket Fundamentals

• Lower Delaware County's multi-housing market has consistently demonstrated strong fundamentals, with an average annual rent growth of 4.8% over the past five years.
• Projections indicate continued growth, reaching 4.9% by year-end 2024 and remaining above 3.0% through 2026. 

Dynamic Suburban Location

• Residents benefit from excellent accessibility via the property's proximity to Baltimore Pike, PA Route 13, and Interstate 476, providing connections to major employment centers.
• The Property is situated within the Springfield school district which is rated A+ by Niche.