Waller Group is proud to present the 35-unit light value-add Ferndale Flats on Woodward property in Ferndale, MI. The property includes 1 leased retail space at $3k/month through 2026 and a billboard currently leased for $10k/year, which can be increased substantially upon expiration in 2024. Ownership has a LOI for $60k. Current rents are lower than majority of market rents, leaving plenty of room for growth. Additionally, rent growth and median income is well above surrounding cities, while crime rate and vacancy rate are well below surrounding areas. Subject property has an assumable loan with a current balance of $2,307,000 at a 5.1% interest rate, based on 25 year amortization and a term ending in July 2029. Current ownership is selling to re-allocate proceeds to new projects.
Current ownership has fully renovated all 35 units, including full interior and exterior work, other than roof (20 years old, but good condition per owner), stairs, catwalks, and parking lot.
Community amenities include laundry facilities on-site, secured/ gated surface parking, electric car charging station, and bike racks. Interior amenities include hardwood like vinyl flooring, private entrances, efficient appliances, A/C, microwaves, with all interiors being newly renovated and redesigned.
Current ownership is achieving $212,495 in annual NOI. New ownership, based upon area rent comps, can raise rents up to $90 / unit, which is a $0.15 / sqft rent bump. With this bump, new ownership can achieve an annual NOI of $271,122.
The property is currently managed with a salaried maintenance/leasing staff, and new property management was put in-place March 1st. Proforma financials were underwritten with a 4.0% management fee.