$365000

Mary Ann Apartments
  • Units: 45
  • Cap Rate: 15.84 Percent
  • Price Paying: 16.78 sqft
  • Price Per Unit: $8111
  • Property Type: Multi Family
  • Gross Rent Multiplier: 1.97
  • Year Built: 1965
  • Monthly Income Per Unit: $343.10
  • Expense to Income Ratio: 68.79 Percent
  • Average Square Feet: 483.33
  • Debt Service Coverage: 2.43
  • Cash Flow: 34062.33
  • ROI Year One: 31.11
  • Listing Agent: -
  • Property Features: Income Property Organization is pleased to present the exclusive marketing of Mary Ann Apartments, which consists of 45 units, and is located in Flint, Michigan. Mary Ann Apartments is situated off of Court Street, within 1.5 miles of downtown. The City of Flint has seen recent revitalization and reinvestment, including the recently announced expansion of Michigan State University’s Medical School, which will be adding a campus to be housed in the former Flint Journal Building. Flint has envisioned its renewed local economy with a focus on higher education. In addition to MSU’s Medical School, colleges such as University of Michigan Flint, Kettering University, Mott Community College, and Baker College all call downtown Flint home. Residents can immediately access major area thoroughfares such as I-475, I-69 and I-75. As for the property itself, Mary Ann Apartments was built in 1965 and features 45 one-bedroom/1 bathroom units. The heat is provided via gas-forced air furnaces and is master metered, providing a buyer with an opportunity to add value by implementing a RUBS system. The roofs were replaced 5 years ago and are high-pitched with asphalt shingles. This offering also includes a vacant parcel located across the street from Mary Ann. The current ownership has successfully operated the complex, with historical occupancy at or above 90%. Currently, the occupancy is 78%, and this is a result of the ownership’s inability to devote the necessary management efforts to administer to complex due to personal matters. The 2010 NOI was $57,929, reflecting an honest 11% cap rate based on the asking price of $550,000, and the property has provided strong cash flow for the current ownership until the recent decline in occupancy due to management constraints. Between the proven historical income stream of this asset and the solid physical condition, this investment opportunity entails an easy “value-add” opportunity that can be acquired at a distressed asset price. The property is being offered to the market as a short sale, and is subject to Lender Approval. Mary Ann Apartments is a performing asset that can be acquired at an artificially low value due to the significant economic downturn which has compressed values across the nations, and in particular in Michigan. This situation is exacerbated by a lack of available credit, allowing active buyers to acquire properties at deep discounts. The economic reward will be significant for opportunistic investors with ample liquidity to acquire assets such as Mary Ann 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