- Units: 468
- Cap Rate: -
- Price Paying: -
- Price Per Unit: -
- Property Type: Multi Family
- Gross Rent Multiplier: -
- Year Built: 1970
- Monthly Income Per Unit: $708.66
- Expense to Income Ratio: 63.86 Percent
- Average Square Feet: 804
- Debt Service Coverage: 1.49
- Cash Flow: $473,680
- ROI Year One: 9.22%
- Listing Agent: Greg Coulter
- Property Features: BID DEADLINE: NOVEMBER 8, 2017.
The University Green Portfolio is comprised of three properties, two located on Green Road at the intersection of Green and Leforge Road, and the third located on the opposite side of Leforge off Villa Drive. As a result of this exceptional location residents have an abundance of employment, higher education, dining, shopping and entertainment options surrounding the community. Most notably is the property’s proximity to Eastern Michigan University (¼ miles), Downtown Ypsilanti (1½ miles), St. Joseph Mercy Hospital (2 miles ), Ford Motor Company Rawsonville Plant (2¼ miles), Washtenaw Community College (2¼ miles), General Motors Willow Run Plant (5 miles), and Willow Run Airport (5 miles). In addition to these nearby schools, hospitals and employers, the University Green Portfolio is located just under eight miles southeast of downtown Ann Arbor, which is home to the world renowned University of Michigan.
The flagship of the portfolio is the 162 unit University Green East Townhomes (“UG East”), which were built in 1972 and consist of a mix of twenty-seven single and two-story townhome and ranch-style buildings, an office and a large maintenance garage. This property contains a very attractive unit mix of eighteen 645 ft.2 ranch-style one-bedroom units, twelve 700 ft.2 loft-style one-bedroom units, one hundred and twenty-four 870 ft.2 two-bedroom townhome units, and eight 1,070 ft.2 three-bedroom townhome units. Notable for investors is the exceptional condition of this asset and the numerous upgrades it’s received over the last few years, such as new windows, new entry doors, exterior painting, and numerous unit upgrades including flooring and kitchen cabinets. Residents of UG East also enjoy exceptional landscaping, an abundance of greenspace and full basements with washer & dryer hookups. The utility breakdown of UG East includes tenant-paid, gas-forced air furnaces, individual hot-water tanks and tenant-paid electric. Adjacent to UG North is University Green South (“UG South”), which is comprised of 162 units in six buildings and includes the leasing office of the portfolio. The unit mix at UG South is incredibly diverse and comprised of one hundred and fourteen one-bedroom units ranging in size from 575-675 ft.2, forty 865 ft.2 two-bedroom units, and eight 965 ft.2 three-bedroom units. The heat at UG South is supplied by gas-forced air furnaces and the hot water is supplied by gas-fired boilers, both of which are landlord-paid. The electricity at UG South is separately metered and the responsibility of the tenant. As with its neighboring property, UG South affords its residents with the convenience of on-site laundry, which is located in each of its six buildings.
All three properties comprising the University Green Portfolio are outfitted with Landlord-paid water; however, notable for investors is the long-established water reimbursement program. Per the current program, residents of one-bedroom units pay $25 per month in a water surcharge, two-bedroom units pay $35 per month and three-bedroom units pay $45 per month. In addition to this fee, tenants are also responsible for a $5 per month utility processing fee. Based on trending occupancy levels, this program will allow ownership to recover nearly 85% of the $230K annual water expense.
Please note, in January of 2017 a fire occurred at the South property which affected an entire building and 30 units. In May of 2017 a second fire occurred in the North property, which affected 12 units. The repairs to the South property are expected to be completed by the end of the first quarter 2018 and the repairs to the North building are expected to be completed by the end of 2017. Both repair schedules are dependent upon permit timing; however, the insurance claims have been completed and ownership will transfer any remaining insurance proceeds and prorated loss-rents to the purchaser in the event the repairs are not completed by closing.
- Interior Features: Competitive unit mix ranging from 1-3 bedrooms.
- Exterior Features: -
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