- Units: 144
- Cap Rate: 10.13 Percent
- Price Paying: 34.62 sqft
- Price Per Unit: $29861
- Property Type: Multi Family
- Gross Rent Multiplier: 4.13
- Year Built: 1975
- Monthly Income Per Unit: $603.15
- Expense to Income Ratio: 58.22 Percent
- Average Square Feet: 863
- Debt Service Coverage: 1.91
- Cash Flow: 207883
- ROI Year One: 19.34
- Listing Agent: -
- Property Features: Income Property Organization is pleased to present the exclusive marketing of the 144-unit Newport Woods Apartments, located in Newport, Michigan. Newport Woods is conveniently located only minutes from both I-75 and I-275, which affords its residents easy access to numerous entertainment and employment opportunities.
The City of Newport is an unincorporated area in the southeast portion of Berlin Township. As an unincorporated area, Newport has no legal boundaries or demographic statistics of its own. However, it is located only 6 miles northeast of the City of Monroe, which is the area’s largest city. Monroe is a vibrant, walkable, and historic community that hugs the Lake Erie shoreline- a remarkable paradise for boating, camping, fishing and other outdoor activities. Monroe is the third oldest city in Michigan and the county seat of Monroe County, and is also the core city in the U.S. Census Bureau’s Monroe Metropolitan Statistical Area, which had a population of 152,021 as of the 2010 Census.
Monroe itself is home to approximately 22,000 residents, and is very strategically located, with the only Michigan port that services Lake Erie for waterway shipping and commerce. With Detroit 35 miles to the northeast, Toledo 17 miles to the south, Ann Arbor 40 miles to the northwest, and Metro Airport 30 minutes to the north in Romulus, the Monroe area offers the kind of logistics that both employers and citizens benefit from.
As for the property itself, Newport Woods is comprised of twelve 2½ -story Garden-style buildings situated on a site containing 16.68 acres. Amenities at the property include a pool, clubhouse, coin-operated laundry (all new machines in 2012), a park-like setting and plenty of parking. There is a very competitive mix of units at Newport Woods ranging from 650 Ft.2 one-bedrooms, to 950 Ft.2 two-bedroom units. The property is outfitted with landlord-paid, gas-forced air furnaces that have all been replaced over the course of the last two years. Additionally, numerous other capital improvements were completed on the property and you can find a breakdown of these improvements on page 6 of this memorandum.
Currently Newport Woods possesses an occupancy rate of 84%. The Pro Forma NOI projected is based on a combination of the 2011 & 2011 Operating Statements and the current owner’s budget. Based on our conservative estimates the eventual purchaser of this asset can expect an NOI that exceeds $435K, thus this offering reflects a compelling 10.13% cap rate. According to IPO’s rental survey, the rents at Newport Woods are well below market by approximately $60 on one-bedroom units and $54 on two-bedroom units. Thus, the NOI at Newport Woods could grow substantially upon the successful completion of a rental rate increase.
IPO has seen considerable improvement in pricing over the course of the last 6 months and it is our professional opinion that prices will continue to trend upward in 2012 as the market corrects itself. Newport Woods represents a performing, turn-key asset that can still be purchased at a historically low value as a result of the economic downturn. As the market continues to improve, opportunities like Newport Woods will quickly evaporate, thus the economic reward will be significant for opportunistic investors with ample liquidity to acquire an asset such as Newport Woods in this once-in-a-lifetime Buyer’s market.
- Interior Features: -
- Exterior Features: -
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