Lakewood Villas is a 200-unit garden style apartment community located in Waco, Texas. The property recently received approximately $1,200,000 in upgrades since 2008. Most of which was for the purpose of making the property more energy efficient. Lakewood Villas was constructed in 1971 of wood frame, brick and wood veneer with pitched composition roofs on slab foundations. The subject is individually metered for electric with individual HVAC and individual electric water heaters. The location offers quick and convenient access to both S. Loop 340 and I-35 and employment in the Waco area which is comprised of more than 213,000 people and home to Baylor University which had 14,900 students enrolled in Fall of 2010.
Since 2008 the property has had 177 new energy efficient A/C’s put in place, 174 heat pumps, 55 new refrigerators, solar screens and insulation throughout the attics. Lakewood Villas has a favorable unit mix of mostly two and three bedroom units with an average unit size of 841 square feet. The mix breaks down as follows: 32 one-bedroom/one bath units averaging 600 square feet, 72 two-bedroom/two-bath units averaging 800 square feet, and 96 three-bedroom/one and a half-bath units averaging 952 square feet. The subject density is low at 15.3 units per acre. Interior amenities include all electric appliances, large closets, frost free refrigerators and hard surface flooring in select units. Property amenities include a playground, laundry facilities, clubhouse, controlled access gates, and picnic areas with BBQ grills.
The City of Waco is located in the heart of the Texas manufacturing and technology corridor on Interstate Highway 35, just 90 miles south of Dallas and 100 miles north of Austin. Waco is the county seat of McLennan County and home to Baylor University which had 14,900 students enrolled in Fall of 2010. Baylor is accredited by the Southern Association of Colleges and Schools and is a member of the Big 12 Conference and the colloquial Southern Ivy League. Waco has a large industrial, manufacturing and health care job base. There are three industrial parks: Texas Central Park, Waco International Aviation Park and Waco Regional Airport Industrial Park. Major Employers include: Providence Health Center, Baylor University, M&M - Mars Snackfoods, ALCOA, Wal-Mart and Sanders Farms, Inc.
Waco is an excellent multifamily market with current and historic high occupancy levels. According REIS, the average physical occupancy in Waco for properties built between 1970 and 1979 is currently 96.2% at an average rental rate of $580/unit. For all MF properties in Waco occupancy increased from 94.3% to 95.8% and rent growth decreased from 2.7% to 0.9% compared with YE 2009 to YE 2010.
Lakewood Villas offers a new investor an opportunity to acquire an asset that has recently received approximately $1,200,000 in capital improvements and has upside potential through lease-up of the vacant units. Through lease-up a buyer should be able to see a substantial return on their investment.
