Michigan Value-Add Multifamily For Sale, Great Lakes - Big Rivers Region

Property Description

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.

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Multifamily / Apartment Properties For Sale

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