Arbor Vine is a 20-unit apartment community comprising two 2-story buildings on 0.81 acres in central Fayetteville. All units are 2BR/1BA, 850 sq ft. Comprehensively renovated with over $98,000 in capital improvements in 2024–2025 including new roofs, HVAC, LVP flooring, countertops, cabinetry, and appliances. Tenants pay all utilities. Offered by Colliers on an all-cash basis with no stated asking price. Rent roll updated June 1, 2026: A1 leased at $1,050 (McKay); B18 vacated; B19 (Bacon) renewed at $1,050. Owner confirmed all upcoming renewals at $1,050/month.
| Income Item | 2024 Actual | 2025 Actual | YoY | Notes |
|---|---|---|---|---|
| Rental Income | $188,594 | $195,989 | +3.9% | Core recurring rent |
| Pet Fees | $1,650 | $900 | –45.5% | Inconsistently charged; upside if standardized |
| Late Fees | $295 | $180 | – | Reflects strong tenant quality |
| Security Deposit Forfeitures | $4,501 | $3,191 | – | Non-recurring; exclude from underwriting |
| Unallocated Prepays | ($13) | $7,025 | – | Anomalous — $11K single-month Sep 25; non-recurring |
| Total Reported Income | $196,127 | $208,358 | +6.2% | |
| Normalized Recurring Income | $191,334 | $197,092 | +3.0% | Use for cap rate underwriting |
| Expense Item | 2024 | 2025 | Buyer-Adj. | Notes |
|---|---|---|---|---|
| Management Fees | $13,677 | $14,693 | $13,796 | 7% of EGR; Dunn Property Mgmt |
| Landscaping | $4,579 | $4,389 | $4,389 | Consistent contract service |
| Pest Control | $441 | $728 | $730 | Routine |
| Repairs & Maintenance | $21,912 | $23,414 | $22,000 | Elevated; plumbing ($9,100 in 2025) bears watching |
| Utilities (Common Area) | $1,765 | $1,655 | $1,700 | Tenants pay individual meters |
| Marketing & Advertising | $900 | $700 | $2,000 | Increased to fill 4 vacancies |
| Trash / CAM / Misc | $690 | $395 | $1,500 | Includes admin/accounting |
| Sub-Total (Seller-Reported) | $43,965 | $45,974 | $46,115 | |
| Property Taxes (NOT in seller P&L) | $0 | $0 | $19,811 | Seller omitted. Increases post-sale at 75% of price × 1.14% |
| Insurance (NOT in seller P&L) | $0 | $0 | $20,000 | Seller omitted. Clean loss history supports favorable rates. |
| Replacement Reserves | $0 | $0 | $5,000 | $250/unit/year NAA standard |
| TOTAL Buyer-Adjusted Expenses | $43,965 | $45,974 | $90,926 | Adds taxes, insurance, reserves |
⚠ Critical: The seller's P&L excludes ~$40,000/year in taxes and insurance — the single most important buyer adjustment.
| 2024 Actual | 2025 Actual | Buyer Underwriting | OM Stabilized Yr 2 | |
|---|---|---|---|---|
| Effective Gross Income | $196,127 | $208,358 | $197,092 | $297,362 |
| Total Operating Expenses | ($43,965) | ($45,974) | ($90,926) | ($93,565) |
| Net Operating Income | $152,162 | $162,384 | $106,166 | $203,796 |
| Cap Rate on $2.0M Purchase | 7.61% | 8.12% | 5.31% | 10.19% |
| Cap Rate on $2.5M Purchase | 6.09% | 6.50% | 4.25% | 8.15% |
| Non-Operating (Remodel) | ($52,220) | ($46,300) | — | — |
| Net Income (After Remodel) | $99,942 | $116,083 | — | — |
| Unit | Tenant | Lease End | Current Rent | Renewal @ $1,050 | Notes |
|---|---|---|---|---|---|
| A1 | McKay, Emily | 5/31/27 | $1,050 | $1,050 | ✓ New lease — was vacant in March |
| A2 | Hill, Paige | 6/30/26 | $1,050 | $1,050 | Renews this month |
| A3 | Sunlin, Aaron | 7/31/26 | $1,050 | $1,050 | Already at floor |
| A4 | Rodriguez, Andon | 10/31/26 | $975 | $1,050 | +$75 at Oct renewal |
| A5 | Erickson, Thomas | 6/30/26 | $900 | $1,050 | +$150 — largest uplift. Renews this month. |
| A6 | Kraker, Danielle | 8/31/26 | $1,000 | $1,050 | +$50 at Aug renewal |
| A7 | Castro, Diego | M-to-M | $1,050 | $1,050 | ⚑ Expired Aug 2025 — re-execute lease |
| A8 | Arka, Prosenjit | 8/31/26 | $975 | $1,050 | +$75 at Aug renewal |
| A9 | VACANT | — | $0 | $1,050 | Vacant |
| A10 | Albanese, Sabrina | 5/31/26 | $1,000 | $1,050 | Expired — renew now (+$50) |
| B11 | Fitzwilson, Katherine | 5/31/26 | $1,000 | $1,050 | Expired — renew now (+$50) |
| B12 | Chupp, Anna | 7/31/26 | $975 | $1,050 | +$75 at Jul renewal |
| B13 | VACANT | — | $0 | $1,050 | Vacant |
| B14 | Allison, Haleigh | 9/30/26 | $975 | $1,050 | +$75 at Sep renewal |
| B15 | VACANT | — | $0 | $1,050 | Vacant |
| B16 | Rodriguez-Puerto, C. | M-to-M | $975 | $1,050 | ⚑ Expired Sep 2025 — re-execute at $1,050 |
| B17 | Bamba, Fatimata | 8/31/26 | $1,050 | $1,050 | Already at floor |
| B18 | VACANT | — | $0 | $1,050 | Vogt vacated — was M-to-M since May 2024 |
| B19 | Bacon, William | 5/31/27 | $1,050 | $1,050 | ✓ Renewed 6/1/26 — raised from $975 |
| B20 | Nicole, Jenna | 5/31/26 | $975 | $1,050 | Expired — renew now (+$75) |
| Current Occupied (16 units) | $16,050/mo | $16,800/mo | +$750/mo · +$9,000/yr at full renewal | ||
| Fully Stabilized (20 @ $1,050) | — | $21,000/mo | $252,000/yr annual potential | ||
No asking price stated in the OM — offers via LOI. Valuation uses income capitalization across three NOI scenarios against NWA renovated multifamily cap rates (5.75%–7.25%). Use Buyer-Adjusted NOI as the baseline, not seller's reported figures.
| Cap Rate | Value | $/Unit |
|---|---|---|
| 5.75% | $1,846,000 | $92,300 |
| 6.25% | $1,699,000 | $84,950 |
| 6.75% | $1,573,000 | $78,650 |
| 7.25% | $1,464,000 | $73,200 |
| Cap Rate | Value | $/Unit |
|---|---|---|
| 5.75% | $1,948,000 | $97,400 |
| 6.25% | $1,792,000 | $89,600 |
| 6.75% | $1,659,000 | $82,950 |
| 7.25% | $1,545,000 | $77,250 |
| Cap Rate | Value | $/Unit |
|---|---|---|
| 5.75% | $2,574,000 | $128,700 |
| 6.25% | $2,368,000 | $118,400 |
| 6.75% | $2,193,000 | $109,650 |
| 7.25% | $2,041,000 | $102,050 |
★ Recommended buyer target range
The owner's commitment to $1,050 on all renewals establishes a documented rent floor — no unit re-lets below $1,050. Gross potential rises to $252,000/year. New leases (McKay A1, Bacon B19 renewal) confirm market acceptance at this level. The Colliers pro forma of $1,275/unit is unsupported by current comps and should not drive pricing. Stabilized value of $2.1M–$2.4M is well-supported.
| Property | Units | Avg SF | Occ. | Avg Rent/Unit | Rent/SF | Notes |
|---|---|---|---|---|---|---|
| Arbor Vine (Subject) | 20 | 850 | 80% | $1,003 | $1.18 | Renovated; W/D in-unit; $1,050 floor on renewals |
| Greenway Flats | 84 | 763 | 93% | $1,257 | $1.65 | Smaller units; benchmark competitor |
| Vineyards on Garland | 48 | 695 | 85% | $1,230 | $1.77 | Smaller units, higher $/sf |
| Ruby on the Creek | 195 | 706 | 65% | $1,127 | $1.60 | Large complex; lower occupancy |
| Comp Average | 109 | 721 | 81% | $1,176 | $1.67 | $1,275 Colliers pro forma exceeds all comps |
Arbor Vine is well-located, fully renovated multifamily with real, documented rent upside. Zero delinquency, clean insurance history, improving income, renovation-complete. The value-add story — filling 4 vacancies and rolling leases to $1,050 — requires no additional capital.
Seller financials require significant adjustment. Omission of taxes/insurance (~$40K/yr) overstates NOI by ~$40K. Properly adjusted current-state NOI is ~$106,000–$119,000.
| Scenario | Recommended Range | Going-In Cap | Stabilized Cap |
|---|---|---|---|
| Conservative (current-state) | $1.65M – $1.85M | 5.7%–6.4% | 8.0%–9.0% |
| Value-Add ($1,050 floor · fill vacancies) | $2.00M – $2.35M | 4.5%–5.3% | 6.3%–7.4% |
| Aggressive / Near Colliers Pro Forma | $2.50M – $3.00M | 3.5%–4.2% | 4.9%–5.9% |
MCG view (June 2026): The confirmed $1,050 floor strengthens underwriting materially. A well-structured offer in the $2.0M–$2.35M range is defensible and stabilizes at 6.3%–7.4%. Anything above $2.5M requires rent growth beyond confirmed market evidence.