Michigan Value-Add Multifamily For Sale
Number of Units: 60
NOI (based on last 12 months of operating income and expenses): $428,619
Current Occupancy: 1 vacancy as of 3/1/18 Rent Roll
Phase I was completed in years 1991 through 1994 - 36 units
Phase II was completed in year 2015 -24 units
Located on approximately 13 acres.
All 2 bedroom and 1.5 to 2 bath units.
Each apartment has a private entrance, private patio, covered parking, and individual laundry rooms with washer and dryer hook-ups.
Beautiful landscaping and large open green spaces
There is an extremely low barrier to entry for the area and since there is limited competition in the area, the complex has historically been close to 100% occupied.
The property is also very well maintained with no foreseeable capital improvements needed.
It's clipping coupons for a new buyer with the upside of $50,000+ increase to the NOI simply by raising rates to market.
At a 7.75% cap rate, it is nearly impossible to find stabilized apartment complexes with this type of return.
The value add is raising the rents to market.
The 20 ranch style condos can all be raised to $1,200, the Phase II townhomes to $1,100 (16 units) and the Phase I townhomes to $1,000 (24 units).
This brings your potential gross income to $787,200/year.
With a conservative vacancy factor for the year of 4%, a new buyer's effective gross income would be $755,712.
With a management expense factor of 5.00%, this brings the current adjusted NOI to $463,881.20 for a 7 cap at $6,625,000.
The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.