$1400000

Crystal Court Apartments
  • Units: 124
  • Cap Rate: 10.21 Percent
  • Price Paying: 18.34 sqft
  • Price Per Unit: $11290
  • Property Type: Multi Family
  • Gross Rent Multiplier: 2.48
  • Year Built: 1960
  • Monthly Income Per Unit: $379.49
  • Expense to Income Ratio: 74.68 Percent
  • Average Square Feet: 616
  • Debt Service Coverage: 1.59
  • Cash Flow: 53275
  • ROI Year One: 15.22
  • Listing Agent: -
  • Property Features: Income Property Organization is pleased to present the exclusive marketing of Crystal Court Apartments, which consists of 124 units, and is located in Detroit, Michigan. Crystal Court is situated off of W. 8 Mile Rd. on the border of Detroit and Southfield. As a result of this superior location, Crystal Court has enjoyed historically strong occupancy levels since 8 mile is the primary east-west thoroughfare in the area. According to the Michigan Department of Transportation, traffic counts on 8 Mile are estimated at 60,000 cars per day. As for the property itself, Crystal Court comprised of 124 spacious units in 3 three-story, California-style buildings. The unit mix is very diverse with 8 studio, 90 one-bedroom, and 25 two-bedroom units. Amenities include A/C, on-site laundry, and plenty of parking. The property is equipped with a tenant-paid, electric-radiant heating system, which affords considerable savings to the Owner. Crystal Court is in sound structural condition and numerous capital improvements have been done over the past ten years including new catwalks and roofs. Occupancy is currently at 75%; however, the owner is in the process of an aggressive lease-up and the property is expected to be fully stabilized by mid-winter. According to IPO’s market research, current asking rents at Crystal Court are below market, which should help to facilitate this lease-up. From an investor standpoint, Crystal Court requires very little rehabilitation and simply represents an add-value opportunity whose full economic potential can be realized through increased occupancy. Additionally, once occupancy is stabilized the income can be increased substantially by raising rents to market amounts. Prior to the market downturn, countless multifamily properties in this area of Detroit sold in excess of $25,000 per unit, providing a graphic illustration of how attractive this offering is as $11,290 per unit. This asset can be acquired at a very attractive value due to the significant economic downturn which has compressed values across the nation, and in particular Michigan. This situation is exacerbated by a lack of available credit, allowing active buyers to acquire properties at compelling pricing. The economic reward will be significant for opportunistic investors with ample liquidity to acquire assets such Crystal Court Apartments in this once-in-a-lifetime buyers’ market.
  • Interior Features: -
  • Exterior Features: -

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  • About Us

    Income Property Organization offers customized brokerage services that are designed to meet the specific needs of a wide range of clients -- private owners as well as institutional investors -- who want to buy or sell income property.
  • Contact Us

    Income Property Organization
    6421 Inkster Rd., Suite 200
    Bloomfield Hills, MI 48301
    Telephone (248) 932-0300
    Fax (248) 932-0301