$3650000

Emerald Apartments
  • Units: 79
  • Cap Rate: 8.12 Percent
  • Price Paying: -
  • Price Per Unit: $46,202
  • Property Type: Multi Family
  • Gross Rent Multiplier: -
  • Year Built: 1979 & 1983
  • Monthly Income Per Unit: $622.00
  • Expense to Income Ratio: 49.74 Percent
  • Average Square Feet: 61,900
  • Debt Service Coverage: -
  • Cash Flow: -
  • ROI Year One: -
  • Listing Agent: Greg Coulter
  • Property Features: The City of Madison Heights is a suburb of Detroit located in Oakland County. As of the 2014 census estimate, the city of Madison Heights had a total population of 30,267, while Oakland County as a whole had a population of 1,237,868. The median family income was most recently reported at $40,820 and the average home value is estimated at $80,300. The city lies in the middle of I-696 and I-75, which are two major thoroughfares in the area. This stable community offers tremendous public resources to its residents, including an excellent system of parks in order to offer the community a variety of recreational opportunities. The school district is comprised of Lamphere and Madison Public Schools, along with three community colleges and two universities. Emerald is comprised of 6 two-story Garden and Townhome-style buildings built in three phases from 1979-1983. The buildings contain 2 studio-bedroom units (550 ft2), 62 one-bedroom units (650-900 ft2), and 15 two-bedroom units (1,100 ft2). Notable for investors is the occupancy, which is currently 100% on a pre-leased basis. Strong occupancy such as this is mainly because Emerald Apartments advertises itself with its exceptional condition and convenient location, situated on the south side of 13 Mile Road and east of John R. Road. Outside of Emerald's excellent location, the property also offers residents numerous amenities such as balconies or patios, dishwashers in the townhouses, and an on-site office. Emerald is outfitted with landlord-paid electric baseboard heat in 47 units and individual gas-forced air in the remaining 32 units. It is imperative to note, that after a detailed rental study, it has come to our attention that rents at Emerald Apartments are well below market averages. Currently, average rents at Emerald are $525 for studio-bedroom units, $550-$700 for one-bedroom units, and $850 for two-bedroom units, whereas market rents are $748 for one-bedroom units and $917 for two-bedroom units. With occupancy at 100%, it is clear that a small increase in rental rates could be implemented by a new owner.
  • Interior Features: -
  • Exterior Features: -

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