Barlum Apartments

03-30-2022
06-30-2022

25 E Palmer St, Detroit, MI 48202

  • 83 Units
  • 7.73% Proforma Cap
  • 85.50% Occupancy
  • Value-Add
  • Detroit Market
  • Detroit, MI

Property Description

The Waller Group is proud to present the 85.50% occupied, 83- unit value-add property in Detroit, MI. Current owner renovated 75% of the units. The property has 70 surface parking spaces. Currently the ownership is not utilizing the retail establishments. This storefront retail has the potential to generate $10,000 per month once utilized. Current ownership is achieving $268,580 in annual NOI. New ownership, based upon area rent comps, can raise rents by $190 / unit, which is a $0.34 / sqft bump. With this bump, new ownership can achieve an annual NOI of $680,444. Additionally, there is the opportunity to implement additional income fees through implementing a ratio utility billing system, lease violation fees, and parking fees. Another cost saving opportunity would be utilizing water conservation opportunities such as updates on faucets, showers, and low flow toilets, which can save up to 20% on water bills. Another opportunity for new ownership would be to look into historic tax credits, which currently have not been utilized. Current management is willing to stay on post closing. Proforma financials were underwritten with a 3% management fee. The property is currently available because ownership is looking to reinvest proceeds.

Key Property Information

Listing Status
Available
Listing Type
Highest & best offer
Price
$ 8,800,000
Year Built
1924
Building Size
61,857 Sq ft
Opportunity Zone
Off
Price per unit
$ 0
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42.362544, -83.067447