Riverbend Apartments

Multi-Family for Sale
Sale Pending
Also listed as Retail-Commercial
Catylist Listing ID: 30368931
Property Subtypes: Other, General
Status: Pending
Number of Units: 28 Units
Building Size (RSF): 21,344 SF
Gross Building Area: See Agent
Gross Land Area: 5.05 Acres
Sale Price: $725,000
Unit Price: $25,892.86 Per Unit
Ceiling: 8 ft.
Property Use Type: Investment
Building Name: RIVERBEND APARTMENTS
Sale Terms: Cash to Seller
Cap Rate: 9.78%
Average Occupancy Rate: 80
Gross Rent Multiplier: 3.27
Last Updated: 3/25/2019

Overview / Comments

The property is getting benefit of the new hog processing facility 12-13 minutes away in Coldwater, which opened up 18 months or so ago and is employing upwards of 800 workers. The housing stock in Coldwater is insufficient for the needs, so properties in adjacent towns, such as Union City, are meeting the demand for rental housing. A great sale comp is the 33 unit in Coldwater which closed in early January 2019 for $1,350,000, which is $40,909 per unit. Riverbend Apartments is priced at $725,000 or just $25,893 per unit.

This property has suffered from mis-management and neglect for years and until recently was languishing with 50-60% occupancy. Now managed by a firm headquartered in Grand Rapids with a significant presence in the Kalamazoo and Union City areas since the start of 2018, the property continues to undergo strategic cosmetic improvements along with unit upgrades upon turnover, leading to higher rents and improved occupancy.

Today, three units are still out of commission and will require perhaps $10,000 or so per unit to become market ready. Ownership contemplates leaving the upside to be generated from those units to the new buyer.

This opportunity is priced at $725,000 (all cash / new mortgage) which works out to just $25,893 per unit, which is just under $34 per square foot. The price is roughly a 9.78 capitalization rate on realistic 2019 income / expenses, which then rises to a roughly 11.92 cap upon complete stabilization a year or two down the road.

The property can be delivered with or without existing management in place, as a buyer may prefer.

Financials

Finance Data Year 2009
Real Estate Taxes - Annual($) $137,114 (Annual)

Additional Details

Nearest MSA: Coldwater
County: Branch
Submarket/Township: Other area
Taxing Authority: Village of Union City and Branch County
Tax ID/APN: 021-S95-000-036-00
Zoning: R3- MULTI FAMILY
Site Description: LLO
Area Description: DIRECTIONS: From 94 & M66 in Battle Creek, go S on 66 to M-60, E on M-60 to blinker, Rt, go into downtown, R at Merchants Hardware to prop.
Total Number of Buildings: 4
Property Condition: Good
Number of Stories: 2
Year Built: 1970
Roof Type: Flat
Construction/Siding: Aluminum Siding
Exterior Description: Brick and dryvit construction, along with aluminum siding.
Parking Type: Surface
Laundry: Shared
Sprinklers: None
Heat Type: Electricity
Heat Source: Baseboard
Air Conditioning: Package Unit
Water Service: Municipal
Sewer Type: Municipal

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 769 3,908 7,392
Median Age: 35.81 39.05 40.19
Households: 300 1,545 2,891

Contact

Photograph of Listing Agent

Michael A. Cagen

Marcus & Millichap CARWM Member
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