Foote Hills Apartments & Townhomes
Sale Price: Unpriced
Property Type: Garden Apartments & Townhomes
Unit Count: 182 Units
Average Unit SF: 904 SF
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Well Positioned Asset in a Prime Multifamily Market
Foote Hills Apartments & Townhomes is a solid Class “B” apartment community with a substantial unit count that supports operational and staffing efficiencies. The asset, located in the Grand Rapids suburb of Kentwood, is immediately adjacent to Cascade Township, an affluent community featuring many high end homes.
Although Grand Rapids is not a “tier 1” market, it is the second largest market in Michigan and boasts the strongest and most stable economy of any market within the state. Grand Rapids metropolitan area has received national recognition and numerous accolades for its diverse economy, highly educated labor force, reasonable cost of living and outstanding quality of life.
The subject property is ideally situated just north of 28th Street, a major east-west artery and retail corridor, and one mile west of Interstate-96, a major artery connecting Grand Rapids to Detroit to the east and Chicago to the west. The property offers excellent access and an easy commute to abundant employment opportunities, as well as schools, shopping, restaurants and entertainment. The property is within the Grand Rapids, Michigan MSA, which is home to a number of large employers from diversified manufacturing, service and professional sectors. Grand Rapids also boasts unemployment figures that are below both national and state levels.
Most notable, three new major regional catalysts are under development or recently completed within close proximity to the subject property. These new developments are driving economic growth for Greater Grand Rapids and Kentwood in particular. Foote Hills Apartments & Townhomes is well situated to draw benefit from the resulting growth in quality employment, high paying job positions and expanded need for quality housing.
Multifamily occupancy within the Kentwood submarket exceeds 95%, while the subject property is at 97.3% occupancy. The West Michigan unemployment rate is 2.9% and the market remains poised for healthy future rent growth.
Well Maintained Asset with Beautiful Grounds
The 182 apartment and townhome units were constructed in phases over an extended period between 1973 to 1976. The community consists of 62 townhomes with attached carports and an additional 120 garden style apartments, all with available carports. Foote Hills residents enjoy wooded grounds with a creek running through the property and a peaceful pond immediately adjacent. The wooded entrance to the property is both inviting and serene.
The property has been very well maintained and boasts a significant amount of recent capital improvements. Approximately $800,000 was spent on capital improvements within the past three years, including all new roofs, building siding, dumpster corrals and mailbox banks, along with a complete remodel of the community building. In addition, the community building offers attractive amenities, such as a heated outdoor swimming pool, community lounge area with fireplace, fitness center and dedicated leasing office.
Proven Value Add Opportunity
Foote Hills Apartments & Townhomes presents a compelling opportunity to increase existing rents by continuing its program of unit finish upgrades. 62.6% of the units have been upgraded from standard to either premium or deluxe level packages. In general, kitchen and bathroom finishes, as well as flooring and interior doors had been dated throughout the property. A modern interior renovation plan has yielded considerable rent increases. It has been determined that all Classic and Deluxe units could be converted to the Premium finish level and would lease quickly. Only 38.5% of the units have been upgraded to the Premium finish. The Deluxe finish is a legacy upgrade from prior management and is no longer being implemented. Additionally, there are 38 townhomes with unfinished basements that should draw premiums between $100 - $150 per unit if completed.
Exterior common amenities could additionally include a outdoor community living room with fire pit and grill, a new dog park, and volleyball area.