$5150000

Korvette Apartments
  • Units: 114
  • Cap Rate: 7.39 Percent
  • Price Paying: 70.74 sqft
  • Price Per Unit: $45,175
  • Property Type: Multi Family
  • Gross Rent Multiplier: 6.65
  • Year Built: 1965-1978
  • Monthly Income Per Unit: $566
  • Expense to Income Ratio: 50.90 Percent
  • Average Square Feet: 639
  • Debt Service Coverage: 1.45
  • Cash Flow: 117,823
  • ROI Year One: 11.44%
  • Listing Agent: J.J. Zwada
  • Property Features: The Korvette Portfolio is comprised of two multifamily communities totaling 113 units (with one unit being utilized as an office) and a free-standing medical office building. The flagship of this portfolio is the gated and controlled access 86 unit Korvette Apartments and Medical Office, which is located at 19140-19400 12 Mile Road and acts as the central office for the portfolio. Additionally there is a 9-unit ranch style building located across the street (19175 12 Mile) and an 18-unit located three blocks away within a residential area (18630 Florence).The multifamily portion of this portfolio was constructed between 1965-1978 and is comprised of a competitive unit mix of six studios (500 ft.2), eighty-six one-bedroom units (600-700 ft2) and twenty two-bedroom units (750 ft2). The free-standing Medical Office Building is approximately 1,080 ft2 and has been occupied by the same dentist office for many years under a double-net lease. Perhaps the most compelling aspect of this portfolio is that that the heat for all 113 units is tenant-paid and all units are separately metered for electricity. This aspect of the portfolio provides ownership considerable cost savings in a climate such as Michigan’s. Over the course of the last five years the Korvette Portfolio has seen a considerable level of improvements including kitchen and bathroom upgrades in roughly 67 apartments that included the installation of granite countertops and all new fixtures, numerous roof replacements, a security fence and gate, the complete overhaul of any damaged balconies, many new vinyl windows, and considerable concrete and drain repairs. In all it is estimated that well over $500K in capital improvements were done to the properties; however, ownership has expensed a large portion of these improvements and done much of it with in-house labor making it difficult to accurately estimate the true dollar amount, which in all likelihood is well above this estimate. The Korvette Portfolio is currently professionally managed and operated by a staff that includes a manager, a leasing agent, a maintenance super and two maintenance technicians. The current staff has expressed interest in staying on with a new owner, which is an added benefit in today’s marketplace where quality trained staff is difficult to come by. It is also noteworthy to mention that the current management company would stay in-place if an investor desired a truly turn-key operation and transition of ownership.
  • 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.
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    Income Property Organization
    6421 Inkster Rd., Suite 200
    Bloomfield Hills, MI 48301
    Telephone (248) 932-0300
    Fax (248) 932-0301