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(119 Units) 220 Whitty Dr. Myrtle Beach SC 29579, USA - Available Opportunity

Commercial Real Estate: Multi-Family


$14,008,000


Real Estate Investment Opportunity Overview

220 Whitty Dr. presents an unparalleled investment opportunity in the Myrtle Beach area. Its recent conversion, coupled with its potential for significant revenue growth and strategic location, makes it a prime asset for investors aiming for both steady returns and value appreciation.


Prospective investors are encouraged to submit their offers at the earliest to capitalize on this off-market opportunity.


PROPERTY OVERVIEW:

  • Unit Count: 119

  • Class: B

  • Type: Value-Add

  • Vintage/Renovated: 2005/2022

  • Asking Price: $14,150,000

  • Price Per Door: $114,285

  • Service Fee: +3%


FINANCIALS:

  • Gross Income: $1,426,079.33

  • Operating Expenses: $419,527.85

  • Net Operating Income (NOI): $1,006,551.48

  • Cap Rate: 7.40%

  • Pro Forma NOI (1st Year): $1,129,608

  • Pro Forma Cap Rate: 8.30%

  • Occupancy Rate: 97%


PROPERTY HIGHLIGHTS:

  1. Unique Conversion: Originally built as a hotel, this property was converted into a multifamily residence in 2022.

  2. Move-In Ready: All units are fully furnished, reducing further capital investment.

  3. Under Market Rents: Units currently rent at an average of $1,117/month. Comparable units in the vicinity average $1,400/month, indicating a 20% upside potential in rents.

  4. Short-Term Rental Potential: The strategic location and design allow for the possibility to convert into short-term rentals. This could potentially increase average monthly revenues to approximately $2,200/unit, a 52% surge in income.

  5. Section 8 Tenants: About 62 units are occupied by Section 8 tenants, ensuring a steady stream of income.

  6. Population Density: A strong population of 100,614 within a 5-mile radius indicates potential demand for housing.


STRATEGIC VALUE-ADD OPPORTUNITIES:

The Myrtle Beach area has experienced consistent growth in demand for both long-term and short-term housing due to its appeal as a prime vacation spot and a burgeoning job market. This property, with its unique conversion from a hotel, presents multiple avenues for an investor:

  • Rental Increase: Current rents are 20% below market rates, allowing for immediate revenue growth by adjusting to market rates.

  • Short-Term Rental Conversion: The rising trend in vacation rentals in the Myrtle Beach area can be capitalized upon by converting some or all units into short-term rentals.

  • Diverse Tenant Base: The presence of Section 8 tenants offers consistent revenue. Meanwhile, there's potential to diversify the tenant mix, catering to both long-term residents and vacationers.


SELLER FINANCING:

Seller financing may be available. Interested investors should submit their terms for consideration. It's noteworthy to mention that the property is free from any existing debt, providing flexibility in financing terms.


TERMS OF SALE:

  • Non-Binding LOI/PSA: Required for all offers.

  • Proof of Funds (POF): Necessary for all offers, tours, and to receive updated financials.




Market Comparables


Rent Comparables


Operating Statement




Photo Gallery



A&R Development & Acquisitions

Eric Brinson, Realtor & General Contractor

Mobile: 615-987-7897

ericb@andersonandryan.com

www.andersonandryan.com


*Note* You DO NOT have permission to market this property in anyway to anyone on any social media platforms, email, or direct to someone you know. You DO NOT have permission to mark up the property for your profit. If you know someone who may want to invest with us on this property contact ericb@andersonandryan.com directly to discuss. This is an off market investment opportunity.




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