Royal Oak Towers is situated on the west side of Wyoming Avenue, just north of Eight Mile Road in Ferndale. This tower style community was built in 1976 and has received numerous updates in recent years. The property offers a diversified and extremely competitive unit mix comprised of 190 one-bedroom units with approximately 482 sq.ft. of living space and 10 two-bedroom units with approximately 651 sq.ft. of living space. The unit’s themselves are in excellent condition with as needed repairs and updates happening frequently.
Royal Oak Towers is currently part of the Michigan State Housing and Development Authority’s Low Income Housing Tax Program (“LIHTC”) and is governed under Section 42 of the Code. As a result of this association, the property receives reduced property tax exposure; however, 100% of the units must be rented to families who’s income does not exceed 60% of the area median gross income. Current income limits for Oakland County at the 60% threshold are $32,760 for one person and $37,440 for two persons (link to MSHDA Income Limits). This agreement was established in November of 2003 and there are approximately 14 years remaining on the extended use period. With the property now in the extended use period a new owner could remove it from the program thereby lifting the income restrictions.
Home to nearly 10,000,000 residents, Michigan is the 10th largest state in the U.S, and is part of the Great Lakes megalopolis, with a population in excess of 50,000,000 and one of the world’s largest economies. Michigan is strategically located and has long been a logistics hub for freight & rail shipping, with a host of major interstates and highways connecting the region, including I-75, I-94, I-69, I-96, US-23, US-127 and US-131. There are also three International Bridges, several tunnels and ferries to facilitate commerce with neighboring Canada, and a major International Bridge development pending south of Detroit that is expected to have a significant economic impact for international trade & commerce. This excellent location and transportation infrastructure facilitates commutes and enables convenient access to all of Michigan and the Great Lakes region for residents and businesses alike.
This dynamic state is comprised of 83 Counties within two peninsulas that offer residents a quality of life that is unparalleled given the resources and affordability. The Great Lakes hold 1⁄5 of the world’s fresh water supply and provides a paradise for outdoor recreation. With the longest freshwater coastline in the world to furnish scenic views and over 11,000 inland lakes, a Michigan resident is remarkably never more than 6 miles from a Great Lake or inland lake. An impressive 13 Public Universities (with two Big Ten Schools) call Michigan home, and the state ranks 3rd nationally in annual University Research & Development, with over $1.5 Billion allocated each year for cutting-edge research in an array of fields.
Michigan has an annual Gross State Product of approximately $508 Billion- the most comprehensive measure of economic activity-ranking it 14th in the nation. The local economy is very strong, leading many savvy investors to be bullish on Michigan multifamily investment due to the compelling pricing that the market affords. Over the last few years out-of-state and international investors have been very active in Michigan and this trend is likely to continue. Major economic indicators such as the unemployment rate substantiate this view, as Michigan’s jobless rate has plummeted from 14.4% in June 2009 down to 4.5%% as of June 2018, prompting some to argue that Michigan is leading the economic recovery through innovation in high-tech industries and manufacturing, in tandem with the resurgent automotive industry. The Big Three (Ford, GM and Chrysler) have all mounted an incredible comeback, with sizable growth in sales, market shares, and profit margins they haven’t seen in over a decade.