Maplewood Manor 6401 Middlebelt Rd 40 Unit Apartment Building $3,650,000 ($91,250/Unit) 7.13% Cap Rate Garden City, MI 48135

Income Property Organization is pleased to present an exclusive opportunity to purchase Maplewood Manor Apartments, a 40-unit multifamily community located at 6401 Middlebelt Rd., Garden City, MI 48135
Maplewood Manor offers a selection of one-bedroom apartments, ranging from 450 to 735 square feet. The property is comprised of ranch-style buildings that were built in 1954 and a two-story, California-style building constructed in 1970. The property has been well maintained over the years and last year underwent a $300,000 renovation that included the upgrade of 23 units with new kitchens, baths, flooring and fixtures. These renovated units command $30-$50 more in rent compared to standard units.
The property's utility structure is appealing, with 32 of the units serviced by individual and separately metered forced-air furnaces, hot-water tanks and sleeve AC units. The remaining 8 units are serviced by a hot-water baseboard boiler. With a large portion of the property separately metered this shifts most of the utility costs to the tenant. Water is master-metered for the entire property; however, ownership does charge a water surcharge.
Currently Maplewood Manor is operating at 93% physical occupancy; as a result of its ongoing rehabilitation program and previous management issues that have since been resolved. Based on recent leasing trajectory it is ownerships belief that occupancy will easily hit 100% by the end of summer.
IPO projects a year one Net Operating Income (NOI) of $260,398 based on average rents and a blend of Pro Forma and T12 expenses. Our NOI assumes that stabilized occupancy of 95% is achieved by month two through a positive saturation of 1 unit per month. This results in an annual occupancy rate of 94.8%. By year two we expect the NOI to eclipse $270K due to a full year of stabilized occupancy and renewals at market rates.
Maplewood Manor represents a well-located, turnkey asset with value-add potential ready to be realized through an active, hands-on management approach.