Under Contract

Chase Commons

Baltimore, MD

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The Offering

Offering Details

List Price $1,150,000
# Of Residential Units 10
# Of Commercial Units 1
Walk Score 97
Year Built / Renovated 1900 / 2015

241 W Chase St | Baltimore, MD 21201

Harbor Stone Advisors is pleased to present Chase Commons, an investment opportunity in Mount Vernon. The property is roughly a 2 minute walk away from the University of Maryland Medical Center Midtown Campus, one of the top employers in Baltimore City.

Chase Commons features (10) 1 Br-1 Ba apartment units and (1) vacant commercial space on the ground floor. Current ownership completed a gut renovation of the property in 2015 which included apartment renovations.

This was partially funded through the project-based NED's (Non-Elderly Disabled) program in 2015 and as such a 70% of the units are allocated for these tenants. NED's contract will expire in December of 2030. Typical unit features include white appliances, wood cabinets, laminate countertops, updated bathrooms, ceramic tile in wet areas, and carpet in living areas. In addition to apartment renovations, ownership also installed all new windows and plumbing.

The opportunity exists for a new owner to focus on streamlining property operations and organically increasing rents for the market rate units, as well as leasing the commercial space to a long-term tenant. A new owner also has the option to refresh all of the residential units via a light renovation program upon turn. Additionally, there are some future tax savings as the property currently has a CHAP tax credit in place through the 2026-2027 tax year. Chase Commons has pre-existing debt that must be assumed. The current loan balance is $861,714 with an interest rate of 4.25%. The loan matures in 2046, and the loan assumption fee is 2%.

Walker's Paradise: Daily errands do not require a car

Offering Highlights

Opportunity to Acquire Gut-Renovated Asset in Mount Vernon

- Unit mix consists of (10) 1 Br-1 Ba apartments and (1) vacant commercial space

- 70% of apartment tenants are project based NED (Non Elderly Disabled), providing certainty of rental income including 2 months of vacancy income at turnover

- Current ownership completed gut renovation in 2015 which included apartment renovations and installation of new windows and plumbing

Multiple Value-Add Possibilities Still Exist For a New Owner

- Streamline property operations and organically increase rents

- Secure a long term tenant for the ground floor retail

- Refresh all residential units via a light renovation program upon turn

- Future tax savings as property currently has a CHAP tax credit in place through the 2026-2027 tax year

Non-Elderly Disabled (NED's) Contract in Place for 70% of the Apartments

- NED's Contract essentially guarantees rent for 7 of the apartments

- NED's Program has a waiting list of tenants and pays rent for up to 2 months of vacancy

- Typically 2% annual rent growth pegged to HUD increase for Section 8 housing

- NED's Contract expires in December 2030

Well-Positioned in Mount Vernon, 2 Minute Walk From University of Maryland Medical Center Midtown Campus

- Located less than a mile away from numerous public transportation stops including Penn Station, Light Rail, Subwaylink Metro, and Citylink Bus

- Walkable to dining, retail, and neighborhood cultural staples such as the Lyric Opera House, Meyerhoff Symphony Hall, and the famous Belvedere Hotel

- Major area employers nearby: University of Maryland Medical Center Midtown Campus, Social Security Administration, Agora Financial

- Major area colleges nearby: Maryland Insitute College of Art (MICA), University of Baltimore, Peabody Institute of The Johns Hopkins University