6 Apartments & 1 Office in Charles North: Value-Add Opportunity at 2124 Maryland Avenue

What’s Special About this Investment Opportunity:

Utilize in-place cash flow while renovating the vacant apartments at 2124 Maryland Avenue. These compact apartments are in high demand amongst Baltimore City’s young professionals and working class. Take advantage of the growing Maryland Avenue corridor in Charles North, and the $90 million renovation of Penn Station just six blocks south.

Mixed-Use Investment Details:

Unit Mix:

• 4 One-Bedroom Apartments
• 2 Studio Apartments
• 1 Office Space

2124 Maryland’s apartments have easy-to-clean kitchens with laminate countertops, stainless steel sinks, 20″ gas ranges, and vinyl tile floors. Bathrooms have wall-mounted sinks and claw-foot tubs, with vinyl tile floors. Living spaces have commercial-grade carpet. Uniform finishes are easy to clean and replace for tenant turnovers.

The first floor office is an expansive suite with six office rooms, one full and one half bathrooms, and a kitchen. The office is owner-occupied; the owner could negotiate a lease-back period for move-out.

Three of the office rooms are finished and turn-key; the others are stripped down and ready for new build-out. One apartment is also stripped down and ready for refinishing. A new owner could install similar finishes to the rest of the building, or upgrade the apartment further to increase rental income.

Utility Breakdown:

Each of the six apartments has its own electric meter with 60 amp service, and its own gas meter for cooking fuel. The first floor office (once divided into three apartments) has three electric meters of its own.

2124 Maryland’s tenants stay warm with radiator heat, distributed from a gas-fired hot water boiler. One 50-gallon gas-fired water heater serves the building.

Observable water supply lines are copper and c-pvc, with a steel water main. Drain lines are pvc. 2124 Maryland Avenue has mostly single-pane, double-hung wood windows, with some vinyl replacement windows, and a built-up roof. A large rear yard could accommodate up to 5 cars.

What’s Great About Charles North:

According to Live Baltimore, Charles North’s population is 93% renters, providing a constant tenant pool for neighborhood apartments. Charles North is home to diverse array of restaurants and bars, such as Dutch Courage, a gin-centric cocktail bar, or Fadensonnen, a beer garden opened by restauranteur Lane Harlan. Residents enjoy the mix of eateries, art venues, and shops in the neighborhood.

Located in central Baltimore City, Charles North offers commuters a quick drive to points north or south via I-83. 2124 Maryland Avenue garners a 94 WalkScore, or “Walker’s Paradise”; a 75 TransitScore for its “Excellent Transit”; and an 87 BikeScore, being located along Maryland Avenue’s Cycle Track.

Investment Summary:

$395,000
$56,429 Per Unit
$129 Per Sq. Ft.
5.8 Times Market Rents (GRM)
9.64% Cap Rate
11.9% Projected Cash-on-Cash Returns