Income Property Organization is pleased to present Miller Greens Apartments, which consists of 50 units, and is located in Oak Park, Michigan.
LOCATION & MARKET:
Oak Park is a city of 29,842 residents and enjoys an excellent location in southern Oakland County (5th wealthiest County in the U.S.), surrounded by highly affluent communities such as Huntington Woods, Royal Oak and Birmingham, with hip Ferndale to the east and business-oriented Southfield to the west. This is an affordable, middle-class community that has long been an excellent rental market as there are limited apartment developments and units within the 5.1 square mile area that encompasses Oak Park and the majority of the city is neighborhoods of single-family housing. The Median Household Income is $49,444. Oak Park has outstanding access to area travel routes as it sits along the I-696 corridor, which links the west suburbs to the east suburbs, with I-75, M-10 (the Lodge), and M-1 (Woodward Avenue) all within a short distance, providing convenient commutes for residents. There are Amtrak stations in neighboring Royal Oak and Birmingham and Detroit Metro Airport is a 20-minute drive from Oak Park. Entertainment is a short drive away as Royal Oak and Ferndale are less than a 10-minute drive and resurgent Detroit is only a 12-minute drive away.
Local recreational attractions including David Shepherd Park (outdoor pool and ice rink), the Detroit Zoo and Rackham Golf Course. Diversity has long been celebrated in Oak Park and that fine tradition continues today. The property itself is proximate to many of the retail options in Oak Park, with Walgreens, PNC Bank, Oak Park Shopping Center, a supermarket and many restaurants located in the vicinity, as well as Oak Park High School (1/2 Mile). Higher education opportunities are ample, with Lawrence Tech (6 miles), Wayne State University (10 miles), Henry Ford Community College (11 miles), Macomb Community College (11 miles), all being just a short drive away. Oak Park itself is home to the Michigan Jewish Institute and Yeshiva Gedolah of Greater Detroit. A major employer in Oak Park is FedEx, which is currently developing a new 300,000 sq ft ground distribution facility, slated to open in August 2016.
Miller Greens Apartments & Townhomes is a complex built in 1954 & 1957, consisting of 4 buildings located just south of Nine Mile Road along Greenfield Road. It offers a unit mix of 47 enormous two-bedroom units with approximately 1100 ft.2 of living space, and 3 two-bedroom townhome units with 1,100 ft.2 of living space. Notable for investors is the occupancy, which is currently at 100% and has maintained levels between 95-100% recently. Due to Miller Greens exceptional location, it provides tenants with numerous retail, educational, recreational, and entertainment opportunities that are close to home. Miller Greens has been well-maintained and this offering represents a turn-key investment for a multifamily investor. The property is outfitted with tenant-paid forced-air furnaces.
Miller Greens is currently performing well, which is evidenced by its 100% occupancy. The complex stays full due to a host of factors, including the condition of the property and its aforementioned strategic location. At the asking price of $3,150,000, this offering represents an 8.01% cap rate and is being offered with possible Land Contract terms. It is important to note, that our rent comparables study found that current rents are well below market. For example, the two-bedroom units are approximately $150 below market and the townhome units are approximately $485 below market. If a new owner were to raise rents by just $50 per unit, it would result in an additional $30k in NOI, equating to $375,000 in value based off of a 8% cap rate. With multifamily investment being the preferred asset class in the current market place, Miller Greens presents an exciting opportunity to acquire a high quality asset with plenty of upside.
IPO has seen considerable improvement in pricing over the course of the last 48 months and it is our professional opinion that values will continue to trend upwards through 2017 as a result of historically low interest rates. Miller Greens represents a stabilized, turn-key asset that can be purchased at an incredibly competitive value. As the market continues to heat up, opportunities such as this will quickly evaporate. Please call IPO immediately to set up a confidential tour before this attractive opportunity is gone.