Forest Hills Apartments 12012 Middleground Rd 90 Unit Apartment Building For Sale 6.25% Cap Rate Savannah, GA 31419

Stabilized Value-Add Opportunity at Compelling Basis in Savannah MSA

Berkadia is pleased to present, Forest Hills Apartments, a unique opportunity to acquire a well-performing 90-unit multifamily community situated in the heart of Savannah’s high growth Southside submarket. Built in 1972, the property has been held under the same ownership and care for the last 10 years, and has maintained high occupancy and strong collections throughout, underscoring the property’s below-market rents and the intense demand for quality workforce housing in this supply-constrained corridor. Residents benefit from a “commuter advantage” location within Savannah’s 5.5 million SF retail nexus— minutes from Oglethorpe Mall — with unparalleled access to the region’s primary employment nodes.
The property offers multiple paths to near-term revenue growth are clearly evident through a targeted interior renovation program. Current rents sit significantly below modernized competitors—on average $250/month below—offering a unique opportunity to implement a uniform elevated value-add modernization program throughout 100% of the units. By installing updated cabinetry and pulls, new lighting packages, stainless steel appliances, and in-unit washer/dryer sets, new ownership is projected to capture premiums of $171 per month, while still pricing below similar renovated competing properties and delivering the most affordable upgraded product in the competing submarket. Current ownership has installed wood-like flooring across 100% of the units alleviating this replacement cost off a new owner.
The property does not currently charge residents for ancillary income or utility bill backs. This creates an immediate opportunity for new ownership to implement an immediate resident bill-back structure to generate in excess of $79K per year in additional NOI starting in FY1. In addition, 50 units are equipped with in-unit washer and dryer connections that are not being utilized, this creates a further opportunity for new ownership to implement a modest washer and dryer program to further drive revenue and enhance resident convenience and satisfaction.
Current ownership has invested more than $300K in capital improvements over the last five years, including new roofs, new parking lot, window replacements, exterior enhancements, landscaping improvements, and other property-wide upgrades designed to enhance curb appeal and allow new ownership to focus on revenue generating improvements.
Forest Hills is perfectly positioned to draft off Savannah’s dynamic economic trajectory, which includes a 22% population increase since 2010.
Deal Website:
https://properties.berkadia.com/forest-hills-481881/
Document Center:
https://clientportal.berkadia.com/opportunities/006Pf00000XME4cIAH