1964 Headwaters Dr
Traverse City, MI 49686
Headwaters Apartments · Multifamily Property For Sale · 216 Units

Greystone Bel Real Estate Advisors are pleased to present the exclusive offering of the Headwaters Apartments Development Project in Traverse City, MI. This rare development offering consists of 216 total units, with the first 24 units (Phase 1) being successfully constructed and immediately filled in 2015 (100% occupied within 2-3 months). The remainder of the 192 site plan units (Phase 2 and 3) have already been approved by the city and are just waiting for a developer/sponsor to finish off the project. Headwaters sits on 43.56 beautiful rolling acres that offer residents a spectacular view of the Grand Traverse Bay right off their back porch. The 24 existing units consist of twelve 2 bedroom 1 bathroom units that average 1,147 sq. ft., six 2 bedroom 2 bathroom units w/ garages that average 1,342 sq. ft., and six 3 bedroom 2 bathroom units w/ garages that average 1,491 sq. ft. Greystone Bel has valued the existing 24 apartment units at a 6.5% cap rate at asking price ($3,850,000), with the 192-city approved site plan units being valued at $14,000 per unit ($2,688,000), with a total combined listing price of $6,538,0000. The current developers have projected roughly $25,000,0000 in construction costs to complete phase 2 and 3 with a completed project value of $41,725,000 for the entire 216 units at a conservative 6.5% cap rate. This completed project value is based off current actual rents and current actual expenses of the existing 24 units to determine a 216 unit NOI of $2,712,329 (please visit Greystone Bel's document center for projections). With total acquisition costs ($6,538,000) combined with total construction costs ($25,000,000), an investor/developer would be able to create over $10,000,000 in value with the projected finished value ($41,725,000). Recent demand shows a shortage of Class A apartment communities in the metro Traverse City market. Phase 1 of this project was filled and 100% occupied in 2-3 months of being offered to the rental market and has been consistently 100% occupied since it’s 2015 completion. Headwaters is outfitted with individual gas furnaces and central air conditioning, making tenants responsible for both. Headwaters is 2 miles from the Grand Traverse Bay, 3.4 miles from the Cherry Capital Airport, and 6 miles from Downtown Traverse City. Please visit www.Greystonebel.com for more information.