Although a traditional market rate multi-family property, Gramercy Park is located in the quintessential college town of Champaign, Illinois just 3 miles west of the University of Illinois. College towns have proven resilient in recessions and have continued to post strong growth based on an "eds and meds" economy.
With over 500 units, there is significant scale for an owner who is not yet in the Champaign- Urbana market or even in the region. Gramercy Park has efficiencies of scale not to mention the possibility for management fees of $150,000 or more for operators with their own management companies.
Gramercy Park is located on the west side of Champaign, in close proximity to Kraft Foods and Plastipak which together employ nearly 2,000 workers, and offers a compelling low cost option for primarily graduate students at the University of Illinois. Primary employers other than the university and the health systems are located to the north and west of Champaign including virtually all major retailers and industrial centers.
The property is offered free and clear of debt, allowing a new owner to place still historically low interest rate non-recourse financing on the property. Bridge and floating rate products are available in the low 5% range providing a path to long term non-recourse agency of HUD mortgage options
Gramercy Park offers a true value add opportunity. The property is just 68% occupied in a submarket that is nearly 95% occupied. While rents are generally in line with other Class C properties, Gramercy Park is in the midst of a renovation that will make it competitive with Class B properties charging 20-35% more in rent. The clubhouse is brand new, the next owner need only continue the property and unit renovation program to boost occupancy and begin to see significant rent increases.
