- Units: 96
- Cap Rate: 10.34 Percent
- Price Paying: 26.83 sqft
- Price Per Unit: $25000
- Property Type: Single Family
- Gross Rent Multiplier: 3.49
- Year Built: 1969
- Monthly Income Per Unit: $597.14
- Expense to Income Ratio: 63.94 Percent
- Average Square Feet: 931.67
- Debt Service Coverage: 1.61
- Cash Flow: 93543
- ROI Year One: 15.59
- Listing Agent: -
- Property Features: Income Property Organization is pleased to present the exclusive marketing of Foxcroft Apartments, which consists of 96 units, and is located in Wyoming, Michigan.
Located on the west side of Michigan, Wyoming is a city of approximately 70,000 residents and 7 school districts situated within the Grand Rapids MSA, located just 5 miles south of downtown Grand Rapids. Wyoming is the 16th largest city in Michigan, and the Grand Rapids MSA includes a population in excess of one million people and a host of diverse manufacturing and service-related industries. Wyoming itself has one of the largest industrial tax bases in all of Michigan. The Grand Rapids area has long been known for its independence from the Southeastern Michigan economy, and has outpaced nearly all Michigan areas in recent economic growth.
In an effort to retain current businesses and entice new developments, the City of Wyoming created the Downtown Development Authority and chose the 3-mile stretch of 28th St., running from Byron Center to Division Avenue, to act as Wyoming’s downtown. As a result of this business-friendly environment and the property’s close proximity to the downtown, the tenant base enjoys easy access to numerous employment opportunities, shopping, and eateries. The largest employers in Wyoming include General Motors, Gordon Food Service, United Parcel Service, Consumers Energy, Delphi Automotive, Hope Network, and Benteler Automotive. In total there are 10 major industry types within the city, with Manufacturing and Retail accounting for 30% and 10% of total businesses, respectively. The Grand Rapids MSA is serviced by Gerald R. Ford International Airport, located only 20 minutes away in Grand Rapids.
As for the property, Foxcroft Apartments is a garden-style complex constructed in 1969 on a 6.8 acre parcel, consisting of eight 12-unit buildings. Each building contains 11 two-bedroom units and 1 one-bedroom unit, resulting in an advantageous unit mix of 8 one-bedroom units and 88 incredibly spacious two-bedroom units. A laundry facility is also located in the garden-level of each building. Foxcroft is strategically located a few hundred yards from US-131, affording residents immediate access to the areas additional thoroughfares such as I-96, I-196 and M-6, while also enabling quicker commute times to employment sources and entertainment destinations, such as the nearby Lake Michigan coastline. The historical occupancy supports this strategic location, as is evidenced by the current occupancy of 100%, and the fact that the property is frequently fully occupied.
Unit amenities include air conditioning, garbage disposals, and dishwashers in two-bedroom floor plans. There are 24 carports located on site, affording covered parking for residents. A clubhouse includes a leasing center, resident recreation room, and maintenance storage, with adjoining green space featuring a playground and picnic area. The major building components include a landlord-paid, how-water baseboard heating system, separately metered electric, mansard roofs, 100-gallon hot water tanks, and brick constructed buildings. Air conditioning is delivered through individual units via A/C sleeves. Notably, 6 of the 8 roofs have been replaced over the trailing 3-year period.
From an operational standpoint, this asset is well performing due to the competitive advantages the asset enjoys in the submarket. The historical occupancy has been excellent, and the NOI has been trending upward while the economy has slowly stabilized and returned to normalized conditions. The 2010 NOI was $226,979, and the 2011 YTD annualized is $242,911, which amounts to a compelling cap rate of 10.15% based on in-place NOI. This offering will allow a multifamily investor the opportunity to generate a handsome cash-on-cash return approaching 20% if acquired with 75% leverage.
Foxcroft is a performing asset that 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 enables active buyers to acquire properties at compelling pricing. The economic reward will be significant for opportunistic investors with ample liquidity to acquire assets such as Foxcroft in this once-in-a-lifetime buyers market.
Once you have had a chance to review the included information please call to set up a confidential showing before this attractively priced offering is gone.
- Interior Features: -
- Exterior Features: -
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