Blue Jay Apartments 802-816 15th Ave SW 30 Unit Apartment Building $2,686,505 CAD ($89,550 CAD/Unit) 6.90% Cap Rate Cedar Rapids, IA 52404

Blue Jay Apartments presents the opportunity to acquire a well maintained 30-unit multifamily property located on the southwest side of Cedar Rapids, Iowa. Conveniently situated near the 1st Avenue retail corridor, the Property provides tenants with easy access to grocery stores, pharmacies, healthcare facilities, fitness centers, restaurants, and major employment centers throughout the Cedar Rapids metropolitan area. The Property's central location and convenient access to major transportation corridors continue to support strong demand for affordable workforce housing.
The Property consists of four apartment buildings totaling 30 units, including 14 one-bedroom/one-bathroom units and 16 two bedroom/one-bathroom units. The unit mix appeals to a broad tenant base including individuals, couples, small families, and workforce renters seeking quality housing at an affordable price point. Common area laundry facilities and ample surface parking provide additional convenience for residents.
Current ownership has completed substantial capital improvements designed to reduce future maintenance obligations and improve the overall appearance of the Property. Major improvements since 2021 include new roofs, gutters, soffits, and vinyl siding throughout the complex. In 2024, all four boilers were replaced, and ownership continues to upgrade laundry equipment in each building. Approximately 90% of the units feature updated luxury vinyl plank flooring, reducing turnover costs while enhancing tenant appeal.
Blue Jay Apartments primarily serves Cedar Rapids' blue-collar and workforce housing market. The Property benefits from a diverse local economy anchored by major employers including Collins Aerospace, General Mills, Quaker Oats, Mercy Medical Center, UnityPoint Health-St. Luke's Hospital, educational institutions, and numerous manufacturing and distribution facilities. The area's stable employment base helps support consistent rental demand across multiple economic sectors.
Cedar Rapids is experiencing significant economic expansion driven by several major development projects, including the Google and QTS hyperscale data center campuses currently under construction in southwest Cedar Rapids. Located approximately 10 to 15 minutes from Blue Jay Apartments, these multi-billion-dollar projects are expected to generate thousands of construction jobs over several years while attracting additional industrial and commercial investment to the region. Combined with Cedar Rapids' already diversified employment base, these developments should provide continued support for workforce housing demand and apartment fundamentals throughout the market.
One of the Property's most attractive features is that many of the major capital expenditures have already been completed by current ownership. With new roofs, siding, gutters, soffits, boilers, updated laundry equipment, and luxury vinyl plank flooring installed throughout most of the complex, the next owner should be well positioned to focus on operational improvements and revenue growth rather than significant deferred maintenance projects. These recent investments help reduce future capital requirements while improving the overall quality and marketability of the Property.
Current average in-place rents of approximately $657 per month for one-bedroom units and $764 per month for two-bedroom units provide an attractive opportunity for future revenue growth. Potential upside includes implementing a Ratio Utility Billing System (RUBS), continuing interior renovations as units turn, strategically increasing rents toward market levels, and capitalizing on continued demand for affordable workforce housing in the Cedar Rapids market. Ownership has already completed many of the major capital improvements, allowing the next owner to concentrate on maximizing the Property's income potential.
Current ownership has focused on controlling expenses while maintaining the Property's appearance and functionality. The four building layout allows for efficient management and maintenance operations while providing residents with a quieter, lower-density living environment than many larger apartment communities. Surface parking, common area laundry facilities, and durable building components contribute to long-term operational efficiency.
Offered at $1,900,000 ($63,333 per unit), Blue Jay Apartments provides investors with the opportunity to acquire a well-maintained workforce housing asset generating an actual NOI of $131,111 while offering substantial upside through operational improvements. Current ownership has already completed many of the major capital expenditures, allowing the next owner to focus on revenue growth through implementing RUBS, continued interior updates, and gradually bringing rents closer to market levels. The combination of recent capital improvements, strong local employment drivers, below-market rents, and Cedar Rapids' ongoing economic expansion positions Blue Jay Apartments as an attractive value-add investment opportunity in one of Eastern Iowa's most stable multifamily markets.