MULTIFAMILY / HOSPITALITY
100 tunnel road: asheville, nc
The Brookside Motel was the classic 1960s motor lodge catering to Asheville’s booming tourist industry for many decades. Over the years the use had transitioned to a mix of motel, short-term rental and affordable housing. Located about one mile from downtown Asheville and at I-240 Exit 6, G/M’s approach was to market both a 2-acre development site for commercial/residential uses or a repositioning of the 45-room motel. A frenzied bidding situation ensued within a week of going public. G/M adeptly negotiated with a prospect that closed at the full asking price. A local buyer with motel expertise recognized the untapped potential to implement a renovation program and target the long-term occupant (i.e. weekly/monthly).
LOCATION: Asheville, NC
SALE PRICE: $2,200,000
IMPROVEMENTS: 45-room, 2-building motel
AVERAGE PRICE/UNIT: $48,889
GROSS LEASABLE AREA: 16,430 SQFT
PRICE/SQFT: $133.90
STORIES: 3
BUILT: 1960-1963
PARKING: Paved, on-site
ADR: $44/night
OCCUPANCY: 34%
CAP RATE: NA
ZONING: Regional Business
LAND AREA: 1.99 acres
SELLER: Tunnel Road Property Group, LLC
CLOSING ISSUES: SBA loan / Significant deferred maintenance
365 weaverville road: woodfin, nc
This 12 unit apartment complex features four 2-bedroom units and eight 1- bedroom units. Located in Woodfin, NC, this property is situated along a primary travel corridor providing ease of access to Asheville and Interstate 26 . Each two bedroom unit features a private carport, laundry room and is individually metered for water, gas and electricity.
LOCATION: Woodfin, NC
SALE PRICE: $1,575,000
IMPROVEMENTS: 4 2-bedroom units (2 duplexes), 8 1-bedroom units (2 quadplexes)
AVERAGE PRICE/UNIT: $131,250
GROSS LEASABLE AREA: 9,468 SQFT
PRICE/SQFT: $166.35
STORIES: Duplexes: 1 story / quadplexes: 2 story
BUILT: Duplexes: 1965 / quadplexes: 1982
PARKING: 18 spaces
CAP RATE: 5.7%
OCCUPANCY: 100%
ZONING: Community Shopping (CS)
LAND AREA: 0.85 acres
SELLER: Henson Properties, Inc.
CLOSING ISSUES: Volatile interest rate environment / Seller financing / Estate planning
37 SKYVIEW PLACE: asheville, nc
Built in the 1920’s as a sanitorium, the building experienced two fires and countless modifications as its use changed to traditional multifamily. The buyer’s due diligence revealed structural issues in addition to general deferred maintenance. However, rents that were 25% below market provided substantial upside to the buyer.
LOCATION: Asheville, NC
SALE PRICE: $1,050,000
UNIT MIX: 12 (10 1-bedroom units / 2-studios)
AVERAGE PRICE/UNIT: $87,500
GROSS LEASABLE AREA: 9,842 SQFT
PRICE/SQFT: $106.69
STORIES: 3
BUILT: 1929
PARKING: 12
CAP RATE: 6.5%
OCCUPANCY: 92%
ZONING: RS2
LAND AREA: 0.73 acres
SELLER: KT Property, LLC
CLOSING ISSUES: Significant deferred maintenance / Major capital improvements required to maintain viability of the asset / Post closing escrow agreement
39 STOCKWOOD ROAD EXT: asheville, nc
Asheville Cabins at Willow Winds presented an opportunity to acquire a hospitality use with a long-standing track record in a strong tourism market. Asheville Cabins had over 27 years of experience with solid year-over-year occupancy and ADR growth. Sale included twenty-five furnished rental cabins, management office, maintenance buildings along with all inventory and goods associated with Asheville Cabins at Willow Winds.
Upside exists with 13 acres of excess land along with increasing rates and occupancy. Asheville is rated as one of the top AirBnB / VRBO communities in the country and this investment attracted buyers from all over the country. G/M was able to generate multiple attractive offers and achieved the pricing and goals of our client.
LOCATION: Asheville, NC
SALE PRICE: $7,100,000
LAND AREA: +/- 31 acres
IMPROVEMENTS: 25 furnished rental cabins
AVERAGE PRICE/UNIT: $284,000
BUILT: Primarily 1997-2000 with some outliers
CAP RATE: 7.04%
OCCUPANCY: 85%
ADR: $205/night
ZONING: RS2 and RM6
SELLER: SMM Enterprises, LLC
CLOSING ISSUES: Buyer 1031 / COVID / Allocations between real property and business and potential tax implications
64 Webb cove road: asheville, nc
This apartment complex consisted of four buildings each with four 2-bedroom units, located just 5 miles north of downtown Asheville. The buyer’s due diligence revealed close to $200,000 in deferred maintenance. Below market in-place rents coupled with targeted renovations will provide substantial upside to the buyer.
LOCATION: Asheville, NC
SALE PRICE: $1,600,000
UNIT MIX: 16 2-bedroom units
AVERAGE PRICE/UNIT: $100,000
GROSS LEASABLE AREA: 14,310 SQFT
PRICE/SQFT: $111.81
STORIES: 2
BUILT: 1971
PARKING: 11 covered plus paved off-street
CAP RATE: 6.5%
OCCUPANCY: 94%
ZONING: Beaverdam Low Density Residential
LAND AREA: 2.65 acres
SELLER: 930 Eaton, LLC
CLOSING ISSUES: Deferred maintenance / Radon mitigation
45-47 AURORA DRIVE: Asheville, NC
The property is superbly located in the historic Kenilworth district of Asheville. Marketed as a 4-unit / 8 bedroom apartment complex on one parcel, it was discovered during due diligence that the property was actually a 4-unit condominium subject to a formal declaration, all held by the seller. As such the buyer was not able to qualify for attractive residential financing. In order to salvage the deal, G/M Property Group delicately handled the dissolution of the condominium association which involved gaining City and County site plan approval to merge all four parcels into one, while also maintaining the nonconforming use under the low density zoning district.
LOCATION: Asheville, NC
SALE PRICE: $425,000
UNIT MIX: 4 2-bedroom units
AVERAGE PRICE/UNIT: $106,250
GROSS LEASABLE AREA: 4,560 SQFT
PRICE/SQFT: $93.20
STORIES: 2
BUILT: 1983
PARKING: Paved off-street
CAP RATE: 7.4%
OCCUPANCY: 100%
ZONING: RM-6
LAND AREA: 0.48 acres
SELLER: Iris Properties Investments II
CLOSING ISSUES: Condominium dissolution
21 & 23 DEEP WOODS ROAD: Weaverville, NC
This property consists of two buildings, four units each, and is situated on two tax parcels. Historically, the building had little to no vacancy but featured below market rents. There were concerns surrounding the septic capacity given the eight two-bedroom units. Upside exists in repositioning the asset and increasing rents to market.
LOCATION: Weaverville, NC
SALE PRICE: $515,000
UNIT MIX: 8 2-bedroom units
AVERAGE PRICE/UNIT: $64,375
GROSS LEASABLE AREA: 6,720 SQFT
PRICE/SQFT: $76.64
STORIES: 1 with walk-out basement
BUILT: 1982
PARKING: 2 spaces per unit; off-street
CAP RATE: 8.5%
OCCUPANCY: 87.5%
ZONING: R-3 Residential
LAND AREA: 1.75 acres
SELLER: Deep Woods Properties, LLC
CLOSING ISSUES: Multiple parcels / Septic capacity
371 SUNSET DRIVE: Asheville, NC
Well-located apartment building in the Grove Park neighborhood. G/M Property Group represented the seller and was tasked with lining up the disposition with another multifamily asset in order to consolidate proceeds and complete a 1031 exchange into a single tenant, absolute triple net investment. Firm successfully sold asset to existing tenant as well as the other property and completed the 1031exchange within the time frame. Client successfully exited actively managed investment and reinvested into a passive Starbucks NNN investment with 20-year lease.
LOCATION: Asheville, NC
SALE PRICE: $559,000
UNIT MIX: 1 1-bedroom unit / 3 2-bedroom units
AVERAGE PRICE/UNIT: $139,750
GROSS LEASABLE AREA: 3,984 SQFT
PRICE/SQFT: $140.31
STORIES: 3
BUILT: 1969
PARKING: 7 off-street
CAP RATE: 6.0%
OCCUPANCY: 100%
ZONING: 6.0%
LAND AREA: 0.68 acres
SELLER: Private individual
CLOSING ISSUES: Deferred maintenance / 1031 Exchange
15 GRINDSTAFF DRIVE: Asheville, NC
Historic seven unit multifamily building located in the Kenilworth neighborhood. Buyer’s due diligence revealed deferred maintenance items as well as the ability to carve off a single-family lot. The deal was structured whereby a contingency was in place that required the City of Asheville to approve the single-family lot division prior to closing. The upside for the buyer was to reposition the property by renovating units, increasing rents, and carving off the additional lot for future development.
LOCATION: Asheville, NC
SALE PRICE: $600,000
UNIT MIX: 2 studio units / 4 1-bedroom units / 1 2-bedroom unit
AVERAGE PRICE/UNIT: $85,714
GROSS LEASABLE AREA: 4,876 SQFT
PRICE/SQFT: $123.05
STORIES: 2.5
BUILT: 1927
PARKING: 6 off-street
CAP RATE: 7.6%
OCCUPANCY: 100%
ZONING: RS-8
LAND AREA: 1.0 acres
SELLER: Nailing, LLC
CLOSING ISSUES: Deferred maintenance / Contingency of splitting off smaller lot
116 LOOKOUT DRIVE: Asheville, NC
G/M Property Group represented the seller and was tasked with lining up this disposition in order to generate proceeds for an opportunity zone investment. The property went under contract within 7 days of listing and successfully sold to a local investor that saw the potential to reposition the asset. Below market rents, coupled with a targeted renovation plan, offered substantial upside to the investor.
LOCATION: Asheville, NC
SALE PRICE: $800,000
UNIT MIX: 4 2-bedroom units
AVERAGE PRICE/UNIT: $200,000
GROSS LEASABLE AREA: 4,002 SQFT
PRICE/SQFT: $199.90
STORIES: 2
BUILT: 1982
PARKING: 8 paved off-street
CAP RATE: 4.25%
OCCUPANCY: 100%
ZONING: RS-8
LAND AREA: 0.41 acres
SELLER: Private individual
CLOSING ISSUES: Retaining wall / Structural & foundation issues / Seller opportunity zone investment timing / Tenant hoarding
295 E. CHESTNUT STREET: Asheville, NC
This well located apartment building received multiple offers and attracted a high level of interest due to its proximity to downtown Asheville. Seller wanted to limit capital gains while continue to receive income from the property. We were successful in structuring a transaction to achieve market rate pricing with seller financing. Client successfully deferred gain and will yield a debt income return for a minimum of five years due to the way the loan was structured.
LOCATION: Asheville, NC
SALE PRICE: $521,185
UNIT MIX: 1 efficiency / 4 1-bedroom units / 1 2-bedroom unit
AVERAGE PRICE/UNIT: $86,864
GROSS LEASABLE AREA: 4,462 SQFT
PRICE/SQFT: $116.81
STORIES: 2 plus daylight basement
BUILT: 1925
PARKING: 5 off-street
CAP RATE: 6.0%
OCCUPANCY: 100%
ZONING: RM-16
LAND AREA: 0.21 acres
SELLER: Highgrove Properties, LLC
CLOSING ISSUES: Deferred maintenance / Capital gains / Replacement of income