is a 140-unit apartment complex in Urbana, IL approximately two miles from the University of Illinois. The property was constructed in 1974 and consists of 32 One Bedroom One Bath, 76 Two Bedroom One and a Half Bath and 32 Three Bedroom One and a Half Bath units.
The complex sits on just over 10 acres and is comprised of 26 separate buildings in a quiet, wooded setting. The property is currently undergoing an extensive renovation including all new kitchens and baths, HVAC, flooring, walls, windows and roofs. Approximately 100 units have been completed and have been leased up immediately bringing the property up to it’s current occupancy rate of 70%.
Aspen Court offers an investor the opportunity to acquire a true add value deal by finishing renovations and lease up. The current owners have spent over $600,000 thus far including a $165,000 grant from the City of Urbana. There is a significant shortage of quality low-income and affordable housing in Champaign-Urbana which is evident by the both the support from the City and the rapid lease up. Additionally, there is a 5 year contract with HUD for 48 units offering consistent income without risk of collection loss.
The Aspen Court Apartments are located in Urbana, IL, part of the Champaign-Urbana MSA, home of the University of Illinois. Urbana has a population of 41,250 while the greater Champaign-Urbana MSA totals 231,891. Served by I-57, I-72 and I-74, Amtrak service and the University of Illinois Willard Airport, Urbana is strategically located approximately 150 miles south of Chicago, 120 miles west of Indianapolis and 175 miles northwest of Saint Louis.
The Champaign-Urbana area is driven economically by the University of Illinois, home to over 41,000 students. The University employees nearly 11,000, spends over $500 million in annual research and development and brings in countless visitors for athletic and special events. The area also has agricultural and manufacturing roots. Kraft Foods maintains a large food processing facility in Champaign that employs around 1,350. Healthcare is an increasingly important part of the economy in Champaign-Urbana with the Carle Foundation and Provena Covenant employing nearly 7,000 people combined.
The apartment market in Champaign-Urbana was somewhat overbuilt from 2007-2009 but has seen steady absorption in 2010 & 2011. Limited new construction and improving fundamentals mean high occupancies and rent growth are projected for 2012. The United States Department of Housing and Urban Development set the 2012 fair market rents in Champaign-Urbana at $682 for a One Bedroom, $802 for a Two Bedroom and $1,007 for a Three Bedroom, an average increase of just approximately 12.5% over 2011.
