Park Place Apartments
Multifamily | 9.69% CAP | 16 Units
Marketing description
Park Place Apartments is a stabilized 16 unit apartment building located in Dewitt, MI. The units are all two bedroom one bath, approximately 800 square feet with their own separate entrance. There are four buildings total, with over two parking spots per unit. The property is 100% occupied grossing +$17,500 per month, with an annual gross potential rent of $233,786.
The apartments were built in 1972 on a slab and siding on the second level. Each unit is separately metered for and electricity and gas, which the tenants pick up those bills, and the landlord pays for water and trash. There is a common washer and dryer for each building for the tenants to use. There are four units in each of the four buildings. The property is equipped with forced heat and AC - each unit has an individual furnace and exterior condenser. Tenants are billed back for utilities, currently about $900 per month. New leases that are signed have a utility bill back of $100 per unit, per month. Other income includes a $10 admin fee, $10 CAM fee, and $2 TC fee per month.
Investment highlights
- Park Place Apartments is a stabilized 16 unit apartment building located in Dewitt, MI. The units are all two bedroom one bath, approximately 800 square feet with their own separate entrance. There are four buildings total, with over two parking spots per unit. The property is 100% occupied grossing +$17,500 per month, with an annual gross potential rent of $233,786.
- The apartments were built in 1972 on a slab and siding on the second level. Each unit is separately metered for and electricity and gas, which the tenants pick up those bills, and the landlord pays for water and trash. There is a common washer and dryer for each building for the tenants to use. There are four units in each of the four buildings. The property is equipped with forced heat and AC - each unit has an individual furnace and exterior condenser. Tenants are billed back for utilities, currently about $900 per month. New leases that are signed have a utility bill back of $100 per unit, per month. Other income includes a $10 admin fee, $10 CAM fee, and $2 TC fee per month.
- The average rent at Park Place is currently $1,100 per month, which is under-market by about $100 compared to what is currently being rented at the property. Proven rental increases through interior renovation have taken place in 12 of the units at the property. A +- $10,000 upgrade, including vinyl plank flooring, new paint, new kitchen appliances and counters, new tub, toilet, and counter in the bathroom have pushed rents to $1,200 + $100 RUBS payment based on the last lease, leaving "plenty of meat on the bone" for the next owner. Increasing the rents to $1,200 from the current average rent of $1,100 would increase the NOI by $19,200 which is $256k in value. Based on the $10,000 upgrade, this is a 50% return on investment.
- The property is offered at $1,650,000 an attractive 9.5% CAP rate. Post renovation and rental increase, the CAP rate is projected to be 10.5%.
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