The city of Ann Arbor is the county seat of Washtenaw County, which is home to approximately 358,880 residents. Ann Arbor itself has a population of 117,070 residents per the 2015 Census Estimate making it Michigan’s sixth largest city. Ann Arbor is best known for being home to the University of Michigan, which is one of the foremost research universities in the United States. The university has a significant impact on the local economy with an enrollment of approximately 43,651 students. Moreover, the university employs roughly 30,000 workers, including an additional 12,000 at the medical center. Outside of the university, the economy is driven by a large number of tech companies that have been drawn to the area by the universities large research grants and graduate base. Ann Arbor consistently ranks as one of “the best places to live” in various mainstream media outlets and not surprisingly per Forbes it ranks as 4th in the nation.
Over the past several decades, Ann Arbor has enjoyed considerable increases in property values as a result of the university, gentrification, and urban sprawl. It’s believed that values will continue to rise in the city as demand has not waivered. Since the country’s exit from the great recession property values in Ann Arbor have been on a steady rise. Specifically, at the end of the recession the average price per unit of existing multifamily stock within a 2-mile radius of the city center averaged $95,985, whereas today the average price per unit is over $200,000 per unit.
As for the property itself, Arbor Flats is situated off Third St. near the intersection of Third and W. Liberty. The property is strategically located roughly 350 yards from downtown – Ann Arbor’s cultural and entertainment epicenter-and just under ½ mile from the University of Michigan. Arbor Flats was built in 1968 and consists of 8 two-bedroom units, covered parking for four cars and off-street parking for an additional six cars. The property has received numerous capital improvements over the last few years including new windows and sliding glass doors and the upgrade of two units with new flooring, fixtures, kitchen counters and bathroom vanities. Property amenities include off-street and common area laundry facilities (owned by the property). The heat at Arbor Flats is serviced by a landlord-paid boiler system and common area electric and water is also the responsibility of the landlord; however, in-unit electric is separately metered and the responsibility of the tenant. Currently ownership does not charge a utility surcharge for water and gas, but considering this is becoming the industry norm, such a program could easily be instituted by a new owner.