West Village Income Package Brochure (3) - LoopNet€¦ · West Village has an active community...
Transcript of West Village Income Package Brochure (3) - LoopNet€¦ · West Village has an active community...
Prepared by:Jan Dijkers, Vice President of Market DevelopmentBerkshire Hathaway HomeServices | The Loft Warehouse3434 Russell St., Suite 101, Detroit, MI 48207
Office: 313-658-6400Cell: 313-319-1370Web Site: www.theloftwarehouse.comEmail: [email protected]
Date: January 2019
7916 Saint Paul St8020 Saint Paul St1722 Parker St1728 Parker StDetroit, MI 48214
In the historic West Village neighborhood
West Village Multi-Family HomeIncome Package
Jan Dijkers, Vice President of Market DevelopmentManaging BrokerOffice: 313-658-6400Cell: 313-319-1370Web Site: www.theloftwarehouse.comEmail: [email protected]
In the growth and redevelopment of Detroit neighborhoods, West Village takes the lead.
In 2016, West Village received access to $30 million for infrastructure improvements such as bike and pedestrian-friendly streetscapes through the Strategic Neighborhood Fund, making it one of the original neighborhoods selected for investment by the city. Commercial development grew in tandem. CraftWork Brewery, Sister Pie bakery, Red Hook coffee shop, Detroit Vegan Soul, Detroit Body Garage, and more made West Village their home.
Today the neighborhood draws a diverse group of residents looking for a walkable-city lifestyle. Now one of the most desirable neighborhoods in the city, West Village also enjoys excellent proximity to Indian Village, Belle Isle, Downtown, Midtown, the Pointes, and area highways.
In terms of investment, the East Riverfront corridor has shown some of the best performances for real estate sales over the past few years. West Village has an active community development corporation; its residents invest in and care about the neighborhood from the ground up, renovating homes, preserving historic architecture, and planting community gardens.
Meanwhile, the city continues to invest in West Village and its surrounding neighborhoods, recently focusing efforts to consolidate and offer up city owned property in RFPs. The Coe, a mixed use development of retail and apartments, is the first new construction in decades. Twenty-five luxury condos are currently under construction in neighboring Islandview. Kercheval Avenue will be transformed with additional housing and retail.
Contents and Summary
Page Index
2. West Village Development Summary
3. Package offering
4. 7916 Saint Paul
5. 8020 Saint Paul
6. 1722 Parker
7. 1728 Parker
8. West Village Value TrendsPhoto courtesy of Detroit Unspun
Five two-family homes, all within a few blocks of each other. Four of the homes are generating income, and one has undergone a full renovation and is ready for tenant occupancy. The combined pro forma is made up of actual and projected financial data.
Package of 4 Homes $1,212,000
purchase costs 1,212,000 list price 2,500 closing costs (recording, closing fee) 1,214,000 total purchase costs
yearly operating costs 8,457 taxes total SEV 2018 uncapped 10,445 insurance 9,600 management fees $100 per unit per month 7,712 maintenance 5,575 leasing fee (assumes tenants stay average 2 years)2,580 lawn & snow 4,345 water 48,714 total
rent roll 1,400 1722 Parker, Lower unit, 2 bed/2 bath 1,400 1726 Parker, Upper unit, 2 bed/2 bath 1,450 1728 Parker, Lower unit, 2 bed/2 bath 1,500 1732 Parker, Upper unit, 3 bed/2 bath 1,350 8020 Saint Paul, Lower unit, 2 bed/1 bath 1,350 8022 Saint Paul, Upper unit, 2 bed/1 bath 1,500 7916 Saint Paul, Upper unit, 2 bed/2 bath 1,200 7918 Saint Paul, Lower unit, 2 bed/1 bath 10,704 total (includes 4% vacancy rate)
128,448 yearly gross income 79,734 yearly net income 6.6% Cap rate
7916 St Paul $299,000
Fully renovated from top to bottom. Updates include full re-wire, re-pipe, two furnaces; two central air condensers, roof, kitchens, main floor laundry each unit, all appliances, white shaker cabinets, granite countertops, mix of engineered and original refinished flooring, remodeled attic into master suite, all windows new or refurbished to historic guidelines, front and rear porches, exterior paint, gutters. Buyer will have the comfort of purchasing a property up to code with a Certificate of Occupancy. Financial data is projected.
purchase costs
299,000 list price
500 closing costs (recording, closing fee)
299,500 total purchase costs
yearly operating costs
1,547 taxes SEV 2018 $13,900 uncapped
2,685 insurance
2,400 management fees
1,000 maintenance
1,350leasing fee (assumes tenants stay average 2 years)
900 lawn & snow
900 water
10,782 total
rent roll
1,200 Lower unit, 2 bed/1 bath
1,500 Upper unit, 2 bed/2 bath
2,592 total (includes 4% vacancy rate)
31,104 yearly income
20,322 yearly net income
6.8% Cap rate - projected
8020 St Paul $269,000
Recently renovated. Combination of wood and laminate floors, updated kitchens with granite countertops, stainless steel appliances; Two sets of laundry appliances in shared basement. Shared basement with separate laundry areas for each unit. Driveway adjacent to house fits two vehicles for off street parking. Lower unit is vacant and was previously rented for $1350. All other financial data is actual.
purchase costs
269,000 list price
500 closing costs (recording, closing fee)
269,500 total purchase costs
yearly operating costs
1,907 taxes SEV 2018 $18,300 uncapped
1,900 insurance
2,400 management fees
2,251 maintenance
1,350 leasing fee (assumes tenants stay average 2 years)
600 lawn & snow
872 water
11,280 total
rent roll
1,350 Lower unit, 2 bed/1 bath
1,350 Upper unit, 2 bed/1 bath
2,592 total (includes 4% vacancy rate)
31,104 yearly gross income
19,824 yearly net income
7.4% Cap rate
1722 Parker $349,000
Two bedrooms and two ensuite full baths in each unit have always made these flats attractive to tenants. Wood floors throughout and bay windows. Central air, fenced yard, rear parking pad off the alley with gate that can be locked. Two sets of appliances, including laundry, per unit. Both units currently rented through May 2019.
purchase costs
349,000 list price
500 closing costs (recording, closing fee)
349,500 total purchase costs
yearly operating costs
2,506 taxes SEV 2018 $25,300 uncapped
2,930 insurance
2,400 management fees
1,561 maintenance
1,400 leasing fee (assumes tenants stay average 2 years)
465 lawn & snow
985 water
12,247 total
rent roll
1,400 Lower unit, 2 bed/2 bath
1,400 Upper unit, 2 bed/2 bath
2,688 total (includes 4% vacancy rate)
32,256 yearly gross income
20,009 net income per year
5.7% Cap rate
1728 Parker $295,000
Two bedrooms and two full baths in each unit (upper unit can be configured as a three bedroom). Wood floors throughout and bay windows. Fenced yard, garage parking, rented separately. Two sets of kitchen appliances, laundry appliances for upper unit. Both units currently rented through May 2019.
purchase costs 295,000 list price 500 closing costs (recording, closing fee) 295,500 total purchase costs
yearly operating costs 2,497 taxes SEV 2018 $25,200 uncapped 2,930 insurance 2,400 management fees 2,900 maintenance
1,475 leasing fee (assumes tenants stay average 2 years) 615 lawn & snow 1,588 water 14,405 total
rent roll 1,450 Lower unit, 2 bed/2 bath 1,500 Upper unit, 3 bed/2 bath 2,832 total (includes 4% vacancy rate)
33,984 yearly gross income 19,579 yearly net income 6.6% Cap rate
West Village Value Trends
In the City of Detroit, multi-family homes (2-4 units) in historic districts perform consistently better than in the city as a whole, and continue to increase in value at a greater rate than the city as a whole.
The data points above represent all multi-family sales (2-4 units) recorded sold on Realcomp MLS within the
last 5 years, excluding Midtown, Detroit.