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TWO HISTORIC TROPHY APARTMENT BUILDINGS within an Opportunity Zone
HATTIESBURG, MISSISSIPPI
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INCREDIBLE OPPORTUNITY TO PURCHASE TWO COMPLETELY RENOVATED DOWNTOWN HISTORIC TROPHY MULTIFAMILY ASSETS WITH STRONG CASH FLOW AND ULTRA-HIGH OCCUPANCY
These historic apartment buildings are located within an opportunity zone in Hattiesburg, Mississippi.
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CALL FOR OFFERS OVERVIEW
This online Call For Offers event is for a renovated multifamily asset consisting of two historic buildings within a qualified Opportunity Zone in Hattiesburg, Mississippi.
The Future of Real Estate’s Call For Offers sale format allows buyers to include contingencies along with their offers.
This seller is highly motivated and has set the minimum offer at $5,999,999. Offer deadline for this Call for Offers is December 5, 2019 (5pm CDT).
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EXECUTIVE SUMMARY
The Future of Real Estate FRE is pleased to present the Call For Offers event for:
The America Building a mixed-use building with 20 apartments, ±4,052 SF retail space
The Carter Building a mixed-use 32-unit apartment and ±8,658 SF retail space
Both buildings are uniquely positioned in the thriving downtown business district of Hattiesburg, MS. The two buildings both have high cash flow in-place with a current NOI of $508,484 and have had strong occupancies that have averaged at 92%+ year-over-year since the redevelopment. The current owners have spared no expense inthe renovations, totaling in excess of $12,000,000. The asset currently has a Community Development Block Grant (CDBG) with an assumable loan at 2% for $2,000,000 for interested buyers. **** For financials, please contact the Event Manager
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THE CARTER BUILDING
Originally constructed in 1904 The building retains the characteristic turn of the century elements including flat and arched fenestration ornamented with dripstones and rock-faced masonry, cast iron columns and cornices
Quality finishes throughout the interior
±8,658 SF of commercial ground floor space 32 Apartment unitsSizes range from ±566 SF to ±1,181 SF with 8 studio apartments, 13 one-bedroom apartments, and 11 two-bedroom apartments
Apartment price range: $700 - $1,600 Apartment units have been restored with new kitchens, baths, windows and updated heating and air conditioning Original hardwood floors have been refurbished in each of the units
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THE AMERICA BUILDING
Built in 1907 Six-story building
20 Apartment units Sizes range from ±581 SF to ±1,467 SF ±4,052 SF of commercial space on first floor Consists of 4 studio apartments, 8 one-bedroom apartments, and 8 two-bedroom apartments
Apartment price range: $700-$2,000 Apartment units have been reconfigured to allow for natural light and open living Kitchen and baths of apartment units feature modern hardware and fixtures with custom stained cabinets and stainless steel appliances New windows, heating and air conditioning systems ensure maximum comfort year round
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OPPORTUNITY ZONE
According to the Mississippi Development Authority (MDA), the multifamily assets are located within a qualified Opportunity Zone. Established through the Tax Cuts and Jobs Act of 2017, private investors can earn substantial tax relief through investments made in a designated Opportunity Zone. Opportunity Zone designations encourage long-term investments in low-income and rural communities through Qualified Opportunity Funds. The Opportunity Funds will provide a tax incentive for investors to re-invest their unrealized capital gains.
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HISTORICAL TAX CREDITS
According to the Mississippi Department of Archives and History, there are substantial federal and state tax credits are available for the rehabilitation of qualifying buildings in Mississippi. Some projects are eligible for both state and federal tax credits, and the combined credits can reduce the cost of those projects substantially. There are three primary tax incentives for the rehabilitation of historic Mississippi buildings, two federal and one state. The federal tax credits apply only to structures used for business purposes. The state tax credit is available to both business and residential properties. The federal government offers a 20% credit for the rehabilitation of historic structures used for income-producing purposes.
The State of Mississippi offers a 25% credit for the rehabilitation of historic structures used for residential or business purposes. Properties qualifying for the 20% federal preservation tax credit automatically qualify for the state tax credit.
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DEMOGRAPHICS HATTIESBURG, MISSISSIPPI
TOP EMPLOYMENT BY OCCUPATION
Office & Administrative: 15.1%
Sales: 13.7%
Education: 9.4%
Food Preparation: 8.3%
Production: 6.1%
TOP EMPLOYMENT BY INDUSTRY
Healthcare & Social Assistance: 16%
Retail Trade: 15.7%
Educational Services: 15.2%
Accommodation & Food Service: 12.6%
Manufacturing: 8.3%
MAJOR EMPLOYERS
Forrest General Hospital, University of Southern Mississippi, Hattiesburg Clinic, Camp Shelby, Maximus, Channel Control Merchants, Mar-Jac Poultry
2017 statistics
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HATTIESBURG, MISSISSIPPI YEAR-ROUND ACTIVITIES
CALL FOR OFFERSTwo Historic Trophy Apartment Buildings within an Opportunity Zone
Hattiesburg, Mississippi
Minimum Offers Start at $5,999,000 Offer Deadline December 5, 2019
for more information & offer details visit www.FRE.com/304