- Units: 388
- Cap Rate: 12 Percent
- Price Paying: -
- Price Per Unit: -
- Property Type: Multi Family
- Gross Rent Multiplier: 1.72
- Year Built: 1917
- Monthly Income Per Unit: $512.27
- Expense to Income Ratio: 79.38 Percent
- Average Square Feet: 732.07
- Debt Service Coverage: 2.11
- Cash Flow: 258589.89
- ROI Year One: 25.23
- Listing Agent: -
- Property Features: Income Property Organization is pleased to present the exclusive marketing of Alden Park Towers, which consists of 378 apartment units and 10 office spaces, and is located off E. Jefferson Avenue in Detroit, MI. The bid deadline for this offering is at 5:00 p.m. Monday, April 23rd 2012.
The property is situated on a 6.5 acre parcel along the Detroit River across from Belle Isle, just outside of downtown Detroit’s CBD, and blocks from Indian Village, Detroit’s most affluent and historic neighborhood. As a result of this strategic location, the residents of Alden Park enjoy the immediate availability of numerous employers and social activities such as Detroit sporting events, concerts, cultural events and other area attractions. For instance, Comerica Park, Ford Field, Joe Louis Arena, Cobo Hall, Detroit’s Renaissance Center, Greek Town, Casinos, Belle Isle, numerous parks, marinas, and the River Walk are all within a short walk or drive. Additionally, major local thoroughfares such as I-75, I-375, I-94, and M-10 can all be easily accessed from the complex, enabling tenants easy commuting. Indeed, Alden Park Towers’ most salient feature is this incredible location within the path of redevelopment that is presently occurring along Detroit’s riverfront, which is detailed below.
As for the property itself, Alden Park is comprised of four 8-story midrise buildings with 378 spacious apartments and 10 commercial spaces that are each approximately 1,000 Ft.2. There is a very diverse mix of floor plans ranging from 400 Ft.2 studios, to 1,300 Ft.2 three-bedroom units. Alden Park is an absolutely gorgeous building constructed in 1917 and containing architectural details and grandeur that simply cannot be found in modern buildings. In today’s world it would cost an exorbitant amount of money to construct this building in the same manner it was originally. The property is outfitted with a landlord-paid heating system and tenant-paid electrical. Alden Park received considerable renovations over the course of the last few years and approximately 25% of the units have been rehabilitated to include brand new kitchens and flooring. In addition to upgraded units, a considerable amount of work has been done to the hallways in the form of new lighting, carpet, and paint. Lastly, vinyl replacement windows have been installed throughout the entire complex, a significant advantage for a buyer in light of the landlord-paid heat. Community amenities include an underground parking garage, on-site laundry, 24 hour security, and breathtaking panoramic views of the riverfront.
In addition to abundant amenities, Alden Park is just down E. Jefferson from the continued development of the Detroit Riverwalk by the Detroit RiverFront Conservancy. This non-profit initiative has been redeveloping Detroit’s riverfront since 2003 with the mission of bringing public access to Detroit’s Riverfront to serve as a catalyst for economic development in the city. Ultimately, the Conservancy plans to develop five and a half miles of riverfront from the Ambassador Bridge to just east of the MacArthur (Belle Isle) Bridge. Half of the project has been completed and in the Spring of 2012 the conservancy is preparing to begin the $35M second phase under the title of East Riverfront. Since Alden Park is located a few hundred yards Gabriel Richard Park-the starting point of the Riverwalk-it stands to benefit tremendously from this redevelopment. Additionally, the Uniroyal site is being redeveloped for a mixed use site, also a few hundred yards from Alden Park. This is all very encouraging news for prospective investors. For more information, please click on the picture to your right to load a short video about the Detroit Riverwalk initiative. A host of details surrounding the Detroit Riverfront Conservancy and their exciting projects can be found on their website at: www.detroitriverfront.org
Currently Alden Park is 45% occupied and is being administered by a Court-Appointed Receiver. The property is being sold on an “As-Is” basis through a Receivership Sale and all-cash terms are required. With the leasing season upon us, a purchaser is in a position to execute an aggressive lease-up to reach a stabilized level of occupancy. Our rental comparison survey indicated average occupancy of 88% for riverfront properties. This would suggest that Alden Park could reach occupancy levels in excess of 75% by the end of the summer.
IPO has seen considerable improvement in pricing over the course of the last 6 months and it is our professional opinion that prices will continue to trend upward in 2012 as the market corrects itself. Alden Park represents a subperforming asset with an incredible riverfront location that can still be purchased at a historically low value as a result of the economic downturn. As the market continues to improve, opportunities like Alden Park will quickly evaporate, thus the economic reward will be significant for opportunistic investors with ample liquidity to acquire an asset such as Alden Park in this once-in-a-lifetime Buyer’s market.
Once you have had a chance to review the included information please call to set up a confidential showing before this aggressively priced opportunity is gone.
- Interior Features: -
- Exterior Features: -
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