405 E Woodlawn Ave
Hastings, MI 49058
Woodlawn Apartments · Multifamily Property For Sale · 16 Units

PROPERTY: Woodlawn Apartments is a 16-unit garden-style community located at 405-409 E Woodlawn Ave in Hastings, Michigan. The property consists of two, two-story apartment building with two (2), one-bedroom units and fourteen (14), two-bedroom units with ample parking and carports available for residents. Featuring reinforced concrete foundation, brick exterior and low-pitch roofs, the buildings were constructed in 1965 on a 1.67-acre site. There are convenient common entrances from both the front and rear of each building with coin-operated laundry available to residents. Occupancy is currently at 94% and notable for investors is the tenant paid electric-baseboard heat. Woodlawn Apartments has been well-maintained with numerous capital improvements completed including two new roofs and this offering represents a turn-key investment for a multifamily investor. FINANCIAL: At the $925,000 asking price this offering represents an 7.16% cap rate, based upon current income trends and 2018 expenses. IPO has a pro forma of $66,000 based upon current rents and a pro forma of $82,000 based upon market rents. As a result of a detailed rental study it has come to our attention that current street rents at Woodlawn Apartments are below market. Specifically, IPO has found that rents are below market by approximately $107 on a street rent basis for two-bedroom units. If an investor were to successfully increase rents to market by $100 for two-bedroom units, they would add approximately $240,000 in value at an 7.0% cap rate. The increased NOI would be $82,000 at an 8.97% cap rate and substantial additional cash flow with no financial investment. Reserve for Replacement have been estimated at $250 per unit based upon the recent capital improvements, minimal common areas and overall age and condition of the property. With multifamily investment being the preferred asset class in the current marketplace, Woodlawn Apartments presents an exciting opportunity to acquire a solid turn-key asset with upside in a quality community for a sound long-term investment.