College Town

116 Unit Apartment Building | $15,800,000 ($136,207/Unit) | 8.79% Cap Rate | Big Rapids, MI 49307

Date Added:
May 17, 2024
Days on Market:
28 days

Asking Price $15,800,000

Property Type
Multifamily
Square Feet
180,752 SF

Listing Contacts

Bruce Lister
Bruce Lister
Verified Profile
Gregory Coulter
Gregory Coulter
Verified Profile
  • Property Info

Property Overview

College Town Apartments consists of 116 four-bedroom, four-bath units that were purpose built in 2007 for the students of Ferris State University. The apartments are between 1,516-1,612 square feet in size and outfitted with private baths, balconies and in-room kitchenettes.
The property has been exceptionally well maintained since its construction and achieved occupancy of 93.75% during the 2023/24 academic year. Currently the property is 58% pre-leased for the 2024/25 academic year, but it is our expectation that occupancy levels consistent with the 23/24 school year will be achieved.
IPO has projected a conservative NOI for the 2024/25 academic year of $1,313,263 based on upward adjusted T12 expenses, forecasted
occupancy and current pre-leased rental rates. At this level, the $15M asking price reflects an incredibly attractive 8.76% potential cap rate based on our underwriting. With interest rates on the decline, we believe debt could be secured on College Town around 6.2%, which would produce an exceptional pre-tax return of 11.98%.

Property Details

Class
B
Year Built
2007
Stories
3
Lot Size (sq. ft)
1,603,008 SF
Units
116

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