110-Property SF Rental Portfolio Hits Market

The rental portfolio totals 250 units.

WORCESTER, MA—A stabilized portfolio of 110 rental properties is on the market for sale. The portfolio features 250 units that are mainly located in Massachusetts, with a majority housed in Worcester County. Jeff Hubbard , president of New York City-based Madison Hawk Capital Markets Group , says 94% of the properties for sale are located in the Commonwealth of Massachusetts. A majority are located in Worcester County, which is located less than 50 miles from Boston and sports a multifamily vacancy rate that is one of the lowest in the nation. The remaining units are located in Rhode Island (5%) and Connecticut (1%). Madison Hawk is representing Scudder Bay Capital of Wakefield, MA in the sale. Scudder Bay Capital acquired the portfolio in 2009 and since then has pumped in significant capital to upgrade the properties. “This is an investment opportunity for someone seeking yields,” Hubbard says. The portfolio consists of 41 single-family homes, 19 two-family homes, 35 three-family homes and 15 buildings with four or more units, all of which have undergone extensive capital improvements over the past five years. The owner-managed properties maintain a 98.5% occupancy rate and generate a net operating income of $1.77 million annually. Hubbard adds that in 2015, the portfolio enjoyed an average 6.9% increase in rents over the previous year. “This is a turnkey real estate investment opportunity that will immediately generate cash flow,” says Hubbard. “The owner has brought these homes up to market standards by investing more than $30,000 per unit in improvements. This has attracted and retained tenants with exceptional credit and above average household income, allowing for competitive rent increases. The end result of the portfolio-wide renovations is high yielding assets in a tight housing market with limited inventory and strong demand.” The multifamily vacancy rate in Worcester averaged 3.1% in 2015, the lowest average among the 75 largest metropolitan statistical areas, according to the US Census Bureau. A property manager currently manages the portfolio and could be retained if the buyer wishes, he notes. The bid deadline for the portfolio is Thursday, March 3, 2016. Bids should be sent to the New York City offices of Madison Hawk Partners, LLC, 575 Lexington Ave., Suite 4017, New York, NY 10022.