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Offering Memorandum Premier Multi Family Investment Opportunity Woodside Apartments...
Transcript of Offering Memorandum Premier Multi Family Investment Opportunity Woodside Apartments...
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Offering Memorandum Premier Multi Family Investment Opportunity
Woodside Apartments, Mt. Pleasant MI
Rem Murray [email protected] Mobile: 586.212.3454
Barry Landau [email protected] Mobile: 248.495.5666
30054 Orchard Lake Rd. Farmington Hills, MI 48334
248.538.4800 www.hscre.com
Exclusive Marketing Agent
Executive Summary
Howard Schwartz Commercial Real Estate, LLC is pleased to present the disposition of the multi family apartment community located on Flynn Lane in Mount Pleasant, MI. The subject property is within one half mile of Central Michigan University and across from Mt. Pleasant High School. The property is comprised of 20 buildings, each apartment having their own individual entrances. The spacious complex allows for large, open common area for tenants to enjoy leisure activities. Each unit is individually metered for electricity and gas allowing an investor to pass these costs on to the tenant. Additionally there are six vacant lots on the property which allows an investor the ability to construct twenty-five more units. This stabilized asset has tremendous value by raising rental rates to market rate and by building the additional units. Centrally located in the lower peninsula of Michigan, Mount Pleasant is a regional centre for healthcare, commerce, retail, casino gaming and tourism, and most importantly, higher education. Mount Pleasant is strategically located along the Route 127 Corridor and is the County Seat of Isabelle County. While it is the second largest employer, Central Michigan anchors the local economy. The University is one of the 100 largest public universities in the country and is well known for its programs in journalism, music and teacher education. The University helps the local economy by creating jobs and driving demand for local businesses and housing. The University is also growing in prestige and importance, most notably, the university added a Medical School in 2013 and currently continues academic expansion. With a student body growing in size, and with the addition of more graduate students, the multi-family sector is poised to capitalize on increased demand throughout Isabelle County.
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The information contained in this offering memorandum has been received from sources deemed to be reliable. It is being furnished to a prospective purchaser of the property solely as a guideline for the actual performance of the investment. A prospective purchaser is advised to undergo their own due diligence with regards to the current and future performance of this investment. Information contained in this offering is subject to errors, change, withdraw without notice. In no event shall a prospective purchaser have any claims against the seller, Howard Schwartz Commercial Real Estate, LLC. or any of their affiliates with regards to the marketing or sale of the property.
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Property Amenities
Common area Amenities
Ample Parking
Park Like Setting
Well Maintained Landscape
Spacious Open Areas
Unit amenities
Large Modern Units
Gas & Electric Utilities Paid By Tenant
Laundry in Each Unit
Individual Entrances
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Current Unit Mix
Number of Units Bedrooms
& Bathrooms
Square Feet
Price Per Month
80 2 / 1 900 $650
4 (ADA Compliant)
1 / 1 810 $600
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Property Photos
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Property Photos
Property Address 1510 Flynn Lane, Mount Pleasant, Michigan
Assessor’s Parcel Number 170001432500, 170001433300, 170001432200, 170001433400, 170001433800, 170001430300, 170001430400, 170001430500, 170001431000
Zoning Multi Family
Site Description
Number of Units 84
Number of Buildings 20
Number of Stories Bi-Level
Year Built 2001
Rentable Square Feet Approximately 900 Square Feet per Unit
Lot Size 7.82 Acres
Type of Ownership Fee Simple
Landscaping Updated Landscaping
Topography Mostly Flat
Utilities
Water Landlord
Phone Tenant
Electric Tenant
Gas Tenant
Construction
Foundation Concrete
Framing Wood
Exterior Vinyl Siding
Parking Surface Asphalt
Roof Pitched Shingle
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Property Summary
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Pro Forma
Gross Potential Rent $753,600.00
Damages Income $7,200.00
Vacancy Factor/ Collections (6%) ($45,216.00)
Total Income $715,584.00
Expenses
Accounting Fees $7,000.00
Inspection Fees $3,000.00
Insurance $12,000.00
*Property Tax ( based on uncapped values) $157,000.00
Professional Fees $1,000.00
Repairs & Maintenance $46,000.00
Utilities – Electric & Gas $4,250.00
Utilities – Water $26,000.00
Trash Removal $4,100.00
Management Fee (4%) $30,144.00
Reserve for Replacement ($200/Unit) $16,800.00
Total Expenses $307,294.00
NET OPERATING INCOME $408,290.00
*Calculation taken from the city of Mt. Pleasant website
Market Rents
Number of Units Bedrooms
& Bathrooms
Square Feet
Market Rent
80 2/1 900 $750.00
4 1/1 810 $700.00
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Financial Analysis
Acquisition Price $5,100,00
Cap Rate 8.0%
Down Payment (25%) $1,275,000
Loan Amount (75% LTV) $3,825,000
Interest Rate 4.75%
Term 25 Years
Loan Payment (Annually) $261,685
NOI $408,290
Cash Flow $146,605
Cash on Cash (Year 1) 11.5%
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303 304 305
SOLD
SOLD 310
338
334 333
332 325
303 - Vacant Land 325- Vacant Land
304- Vacant Land 333 - Vacant Land
305 - Vacant Land 322 - Vacant Land
310 - 8 Buildings 334 – 6 Buildings
338 – 6 Buildings
Parcel Aerial
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Area Amenities
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Area Amenities
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Typical Two Bedroom Unit
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RENT COMP ADDRESSES
Canterbury East: 1517 Canterbury Trail
Park Place: 1401 E. Bellows Street
Yorkshire Commons: 1251 E. Broomfield Street
Dover Court: 1441 E. Broomfield Street
Stonecrest Apartment: 2880 Isabella Road
Rent Comps
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Canterbury East: 1517 Canterbury Trail
•$850.00 •2 Bedroom/ 2 Bathroom •942 Square Feet
Park Place: 1404 E. Bellows Street
•$675.00 •2 Bedroom/ 1 Bathroom •837 Square Feet
Yorkshire Commons: 1251 E. Broomfield Street
•$770.00 •2 Bedroom/ 2 Bathroom •910 Square Feet
Dover Court: 1441 E. Broomfield Street
•$727.00 •2 Bedroom/ 1 Bathroom •872 Square Feet
Stonecrest Apartment: 2880 Isabella Road
•$867.00 •2 Bedroom / 2 Bathroom •987 Square Feet
Rent Comps