Catylist ID: #30368931
Multi-Family for Sale
Sale PendingAlso listed as Retail-Commercial
|Catylist Listing ID:||30368931|
|Property Subtypes:||Other, General|
|Number of Units:||28 Units|
|Building Size (RSF):||21,344 SF|
|Gross Building Area:||See Agent|
|Gross Land Area:||5.05 Acres|
|Unit Price:||$25,892.86 Per Unit|
|Property Use Type:||Investment|
|Building Name:||RIVERBEND APARTMENTS|
|Sale Terms:||Cash to Seller|
|Average Occupancy Rate:||80|
|Gross Rent Multiplier:||3.27|
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 $34 per square foot. The price is roughly a 9.78 capitalization rate on realistic 2019 income / expenses, which then rises to a roughly 11.92 cap upon complete stabilization a year or two down the road.
The property can be delivered with or without existing management in place, as a buyer may prefer.
|Finance Data Year||2009|
|Real Estate Taxes - Annual($)||$137,114 (Annual)|
|Taxing Authority:||Village of Union City and Branch County|
|Zoning:||R3- MULTI FAMILY|
|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|
|Number of Stories:||2|
|Exterior Description:||Brick and dryvit construction, along with aluminum siding.|
|Air Conditioning:||Package Unit|
|Proximity:||1 mile||3 miles||5 miles|
Michael A. CagenMarcus & Millichap CARWM Member
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