Grand Rapids Portfolio of properties for Sale - Central Grand Rapids
The Heritage Collection consists of 8 buildings with unit counts ranging from 6
40 units. The collection includes a mix of lofts, mid-rise apartments, as well as
Heritage Hill apartments. Some of the amenities the tenants enjoy include on
site parking, on-site laundry, security card access systems and cameras,
hardwood floors, fireplaces, and exposed brick.
The collection is within walking distance to Spectrum Health, St. Mary’s
Healthcare, Kendall College, Michigan State University College of Human
Medicine, Van Andel Institute, Grand Valley State University, Grand Rapids
Community College, Cooley Law School, Western Michigan University, and
Davenport University
Based on our carefully conducted rent comparable study, it was determined
rents on the studio, one-bedroom, and two-bedroom units are well below market
when analyzed under Street Rent metrics. Our study found that studio units are
$268 below average market rents, one-bedroom units are $402 below average
market rents, and two-bedroom units are $664 below average market rents, and
three-bedroom units are $464 below average market rents. Such a delta
between existing and market rents provides a new owner with the unique
opportunity to improve this asset’s cash-flow position without making any
financial investment in the property.
From an underwriting standpoint, our Pro Forma is based on actual current
Operating Expenses, and includes a professional management fee, a
Replacement for Reserve, and property taxes adjusted to the SEV. The
vacancy and bad debt factor are consistent with current property trends. IPO
has projected an NOI of $944,405 after Year 1 and increasing to an NOI of
$1,391,335 over a 5-year hold. This increase in NOI over 5 years would
represent an approximate $6M increase in value.
