A RARE MODERN BUILT APARTMENT COMPLEX IN A DESIRABLE LOCATION!!
21
Unit
apartment complex
650 Virginia Park Street, Detroit, MI
650 Virginia Park Street, Detroit, MI
- built in 1966 in an area where most complexes are 80-100 years old
- 62% occupied
- 19 one bedroom units and 2 two bedroom units
- eight units have balconies (a competitive advantage over other local complexes)
- 13 minute walk to future M-1 Rail station at Woodward Avenue and Grand Blvd for quick access to downtown Detroit
- In desirable New Center neighborhood and located within the Virginia Park Historic District.
- On very quiet street surrounded by nicely restored homes with no other complexes in immediate vicinity
- Foreclosure sale being handled by court-ordered receiver
- my offer was accepted during multiple bidding situation
- my contract purchase price is $277 416.00 ($13 210/unit)
- rent roll and financials, title commitment, and detailed pictures of all units available for review
- repair estimate from established local contractor
- offer was based on a 12% cap rate
- purchase price may be renegotiated based on repair estimate and new financials
There is tremendous upside in
this building! The
location is on the northern border of the New Center area, which is
currently experiencing rapid increase in demand for rentals due to the
construction of the M-1 Rail joining downtown to New Center, due to be
completed in 2016.
There is now a very short supply of available properties south of this bulding in New Center, Midtown (location of Wayne State University and extensive development), and downtown Detroit. Property values have more than doubled in the last two years. There are very few quality buildings available.
A much older complex with no balconies in the vicinity sold for about $17,000/unit a year ago. There is also a very high demand for condos and quality rentals near downtown and this building would be an excellent condo conversion candidate.
The tax auction this past month demonstrated the demand for property in this area. There were very few parcels available in the areas south of this building and they all, including vacant land, sold at escalated prices in comparision to recent years. There were no tax delinquent homes on Virginia Park Street in this historic district.
At the tax auction, a nearby condo sold for $65,000. The only apartment building in this vicinity available at the auction, a much older building which is totally vacant, appears to have extensive roof leaks and ceiling damage, and allowed no access inside for potential bidders, sold for $211,000 this past week.
I believe that multifamily values in Detroit will double in the next five years and this building is positioned to do even better. Multifamily prices in a market tend to follow increases in single family home values.
Home prices in Detroit have been doing very well. Since hitting a low of $11,500 in 2009, they slowly increased annually and averaged $22,500 in 2013. When the bankruptcy process began to make positive steps during the last six months, prices took off. This month the average home price in Detroit has hit $43,500.
Multifamily prices will soon start to follow. Asking prices are at an all-time low and need to double to match those of other similar mid-western cities and the values in Detroit only 6 years ago.
According to Loopnet, the building on Virginia Park that I have under contract was one of the most viewed properties in Detroit on Loopnet during the past seven days.
This could be a very profitable deal for you and I am here to help. I would like to retain 10% ownership in the property at purchase and will make sure my contractor completes all needed work and I will oversee the lease-up of the remaining units. I would also consider partnership with you in this purchase or wholesaling the property to you as an investor.
Contact me immediately for more pictures of all units, financials, and other due diligence documents. Please do your research and contact me with any questions. A non-refundable deposit will be required to tie up the deal. First come first serve. Look forward to doing business together!
PassionRight Properties is a registered company in Alberta, Canada.