Institutional-Backed Student Housing & Mixed-Use Investment Opportunity

Located in a designated Opportunity Zone, Brookwood Apartments at 650 W German St represents a premier student housing and mixed-use investment opportunity in the heart of Herkimer, NY. This 36,500-square-foot masonry asset is strategically positioned to capture the high-demand student market while offering a robust, diversified revenue model that provides significant protection against market volatility. The property’s core residential component is designed with a 57-bed capacity across 31 units, featuring a versatile mix of seven one-bedroom units, twenty-two two-bedroom units, and large-format three and four-bedroom floor plans. A critical de-risking feature of this asset is the institutional nature of its cash flow; a substantial portion of the residential revenue is sourced directly via institutional and school disbursements. These direct payments virtually eliminate traditional student-tenant collection risk and provide investors with a level of financial security akin to a credit-tenant lease.

Beyond the core residential income, the property functions as a true mixed-use hub, further stabilizing the cash flow through year-round commercial and amenity-based revenue. The building features an on-site restaurant currently under a monthly lease, serving as a "sticky" anchor amenity for the student residents while providing the owner with steady, non-enrollment-dependent commercial income. Additionally, the property includes a first-floor convenience store and specialized revenue streams tied to regional baseball lodging programs, vending services, and community-wide Wi-Fi infrastructure. This "three-pillar" income model—institutional residential, commercial retail, and high-margin ancillary services—creates a self-contained "campus" environment that performs consistently even during semester transitions or summer breaks.

From an operational standpoint, Brookwood Apartments offers superior fundamentals and significant value-add potential. The 1.15-acre site features a massive parking advantage with a 1.29/bed ratio (40 surface spaces), a key competitive edge in the suburban student housing market. The building itself is a well-maintained three-story masonry structure equipped with an elevator, 24-hour access, and master-metered utilities for streamlined management. With a Walk Score® of 71, the property is "Very Walkable," ensuring it remains a top-tier choice for the local student demographic. For investors deploying capital through an Opportunity Zone fund or a 1031 exchange, this property offers a rare combination of immediate yield, institutional security, and long-term tax advantages in one of Herkimer's most stable submarkets.