Income Property Organization Announces Sales Totaling $63M for 1st and 2nd Quarters
Bloomfield Hills, MI – Income Property Organization (IPO) completed record-setting sales through the first half of 2017 for apartment communities in the Great Lakes market. IPO amassed a combined total of more than $63 million in transactional volume and is on track to see a 40 percent increase in business over 2016. The firm has grown to nine brokers and their market reach now extends beyond the Detroit Metro area west to Grand Rapids and south into Ohio.
This significant activity is supported by a recent report commissioned by the National Multi-Family Housing Council, titled “U.S. Apartment Demand – A Forward Look,” which estimates future U.S. demand for apartments in all states and the top 50 metro areas, including Detroit. The research shows Detroit has nearly 232,000 units in 5-plus unit properties and is expected to see an average annual growth in demand for apartment units of 0.4 percent over the next 13 years.
“This means a projected growth of 15,467 new units, which will offset the number of units built before 1940 that will be economically aging out of the market,” said Greg Coulter, IPO managing member. He added that the NMHC report showed that as much as 70 percent of the city’s apartment properties were built between 1960 and 2000, making Detroit a very attractive market for income property investors.
IPO’s noteworthy deals include these six transactions:
- Wakefield Townhomes in Southfield, consisting of four two-story buildings, five ranch-style buildings and one single-story building containing the property office and a one-bedroom apartment for a total of 67 units in Southfield, Michigan, sold for $7 million with a cap rate of 7 percent. This breaks down to an average of $105,492 per unit at $75.67 per square foot. Built in 1976, the property features several floor plans at 1,400 square feet.
- The city of Essexville, located in southern Bay County directly east of Bay City, is the location of Golfview Apartments. This 144-unit property was built in 1975 and sold for $3.825 million at 12 percent cap rate.
- IPO expanded its presence in the Ohio market with the sale of Heatherwood Apartments, a 75-unit property located in Ravenna, Ohio. The sales price was $2.4 million. Built in 1987, Heatherwood consists of 13 ranch-style buildings, spread across more than 11 acres in a park-like setting.
- A portfolio of three separate properties totaling 139 units in the Lansing market sold for $6.625 million. The individual properties contained in this deal include:
- 26-unit Country Club Manor located in Charlotte, Michigan, for $900,000;
- 63-unit Hull Apartments in East Lansing, Michigan, for $3,245,000; and
- 50-unit Pine Lake Apartments in Haslett, Michigan.
Income Property Organization in Bloomfield Hills, Mich. offers customized brokerage services that are designed to meet the specific needs of a wide range of clients — private owners as well as institutional investors — who want to buy or sell income property. To learn more or inquire about multifamily investment opportunities, contact Greg Coulter at (248) 932-0300.