Half Century Apartments
16 Jefferson Ave SE, Grand Rapids, MI 49503
Sale Price: $3,163,000
Price Per Unit: $158,150
Average Unit SF: 538 SF
Unit Count: 20 Units
Property Type: Market Rate, Purpose Built Low-Rise Building
Stabilized Asset with Strong Cash Flow: Offers investors stable cash flow and consistent cash flow, including significant ancillary income from parking fees, pet fees, and other income. A landlord could bill back utilities to further increase income.
High Quality Construction: Durable brick and masonry construction reduces the cost of exterior maintenance and increases the service life of the building.
Strong Rental Submarket: Submarket occupancy exceeds 95% and the subject property is 100%, thus supporting healthy annual rental rate increases.
Impressive Walk Score: The property boasts an almost perfect 95 Walk Score, indicating high walkability for residents and little need to own a vehicle.
Little Deferred Maintenance: Well maintained property with significant capital improvements made recently - reduces the need for major capital expense in the near future (keep more of your cash flow!).
New Financing Opportunity: The property is offered free and clear of existing debt, providing an investor the opportunity to take advantage of the highly aggressive capital markets, low interest rates, long-term financing with interest only period, and maximum leverage.
Stable and Diverse Economy: Grand Rapids metropolitan area is a dynamic and growing market with a stable and diverse economy anchored by over 90 international companies, including 4 of Forbes's largest private companies, in addition to a strong medical component.
Priced Below Replacement Cost: Maintain rental pricing advantage over any new product constructed in the market.
Strong Demographics: Average Household Income in a 5-mile radius is $70,928, which results in a market rent to income ratio of 18.5%. 74.0% of households with a one-mile radius and 39.8% of households within a five-mile radius are renters. The total population in the five-mile ring is 269,417 people (ESRI-2020). The median age is 32.2 years old with a one-mile radius (ESRI-2020), which is within the prime renter age demographic of 20-34 years old.