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5440 Cass Ave Detroit MI, 48202 THE BELCREST APARTMENTS 5440 CASS AVE DETROIT MI 48202
5440 Cass Ave
Detroit MI, 48202
THE BELCREST APARTMENTS
5440 CASS AVE DETROIT MI 48202
5440 Cass Ave Detroit MI, 48202
■ Midtown Detroit
■ 143 Units
■ 2 Commercials Space
■ Tenants Pay For HEATING and Electricity
■ Only outdoor pool in Midtown
■ OFFERED AT 21,000,000.00
■ Presented By : Belcrest Management
■ 313-831-5700 – Office
Listing Metrics
13 145TOTAL STORIES TOTAL UNITS85 1926PARKING SPACES YEAR BUILT
■ THE OFFERING
Belcrest Management is pleased to offer 5440 Cass Ave, a 145 unit building located in the heart of Midtown. The building consist of studios, one bedrooms, two bedrooms and more. The building is situated between Kirby and Ferry, across the street from the Music Annex of Wayne State University. The building features a mix of hardwood floors and carpeting throughout. Tenants are responsible for paying HEAT and electric. There are 85 parking spaces, and 2 commercial units. The building has been managed by the owners for 20 years. A future owner can come in with fresh capital and upgrade individual apartments & make building wide renovations to add value.
■ 2018 Rentroll and Financials
Unit Size Sq. Feet $/SF Current Rate
Studio (12) 420 $1.54 $650.00
Small 1 Bed (33) 525 $1.38 $725.00
Medium 1 Bed (39) 850 $1.00 $850.00
Large 1 Bed (32) 950 $1.00 $950.00
Small 2 Bed (10) 1200 $0.91 $1100.00
Large 2 Bed (12) 1300 $0.92 $1200.00
3 & 4 Beds (4) 2000 – 2600 $.55 -$.96 $1100.00 - $2500.00
122,190 T/SF $1.09 $127,150.00
Commercial Spaces:
Commercial Unit #1 3800 $.66 $2500.00
Commercial Unit #2 2000 $.45 $900.00
Laundry and Misc. Income: $3,733.16
Parking Income: $5,422.29
Totals: 127,990 T/SF $1.09 $12,555.45
*Monthly Total $139,705.45
■ EXPENSES YEARLY
Insurance $53,812.00
Supplies $62,561.00
Payroll $87,000.00
Taxes $43,002.00
Utilities $95,238.00
Maintenance $17,559.00
Repairs $14,341.00
Professional Fees $19,145.00
Gross Income $1,676,465.40
Total Expenses $392,964.00
Current NOI $1,283,501.40
Purchase Price $21,000,000.00
CAP Rate: 6.1%
■ Projected Financials
Unit Size Sq. Feet $/SF Current Rate
Studio (12) 420 $1.90 $798.00
Small 1 Bed (33) 525 $1.90 $997.50
Medium 1 Bed (39) 850 $1.90 $1,615.00
Large 1 Bed (32) 950 $1.90 $1,805.00
Small 2 Bed (10) 1200 $1.90 $2,280.00
Large 2 Bed (12) 1300 $1.90 $2,470.00
3 & 4 Beds (4) 2000 – 2600 $1.90 $3,800.00 - $4,940.00
122,190 T/SF $232,161.00
Commercial Spaces: Sq. Feet $/SF Monthly Rate Annual Rate
Commercial Unit #1 3800 $15.00 $4,750.00 $57,000.00
Commercial Unit #2 2000 $12.00 $2,000.00 $24,000.0
127,990 T/SF $6,750.00
Laundry and Misc. Income: $3,733.16
Parking Income: $5,422.29
$9,155.45
$248,066.45
■ EXPENSES YEARLY
Insurance $53,812.00
Supplies $59,561.00
Payroll $86,000.00
Taxes $43,002.00
Utilities $87,238.00
Maintenance $17,559.00
Repairs $14,341.00
Professional Fees $19,145.00
Purchase Price $21,000,000.00
Yearly Gross $2,976,797.40
Total Expenses with 5% increase $431,653.00
NOI $2,545,144.40
CAP rate 12.1%
Important information and disclaimer: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended on for us by Belcrest Management and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Belcrest Management. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Belcrest Management employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsibility for errors and omissions.
Comparable Rental Properties Summary:
Property Units Built Occupancy Avg. SF Asking Rent Rent/ SF
Belcrest Apartments 145 1926 91% 882 $900.00 $1.09
Heather Hall 70 1924 85% 507 $1,057.00 $2.09
Finn Apartments 30 1922 95% 450 $973.00 $2.16
Villa Lante 29 1916 100% 427 $992.00 $2.32
Forest Arms 71 1905 85% 781 $1,311.00 $2.21
Strathmore 129 1929 100% 868 $1,395.00 $1.79
Studio One 124 2008 90% 612 $1,508.00 $1.74
The Isabelle 30 1913 98% 423 $1,033.00 $2.44
The Plaza 72 - - 988 $2,345.00 $2.37
Union at Midtown 81 2011 95% 1,135 $2,196 $1.97
Common Area Photos
Hallways, Laundry Room, Salon/Barber Shop, Common Pub.
Studio and Small 1 Bedroom Floor Plans
Studio – ’10
400 Sq. Ft
Small 1 Bedroom – ’05
500 Sq. Ft
Small 1 Bedroom – ’08
500 Sq. Ft
Small 1 Bedroom – ’11
500 Sq. Ft
Medium 1 Bedroom Floors Plans
Medium 1 Bedroom – ’01
800 Sq. Ft
Medium 1 Bedroom – ’03
800 Sq. Ft
Medium 1 Bedroom – ’12
800 Sq. Ft
Medium 1 Bedroom – ’13
800 Sq. Ft
Large 1 Bedroom 2 Bathroom Floor Plans
Large 1 Bedroom 2 Bathroom – ’04
900 Sq. Ft
*Large 1 Bedroom 2 Bathroom – ’06
900 Sq. Ft
*Large 1 Bedroom 2 Bathroom – ’07
900 Sq. Ft
Note: ‘06 and ‘07 floor plans are identical just on opposite corners of the building!
Standard 2 Bedroom and Large 2 Bedroom Floor Plans
Standard 2 Bedroom 1 Bathroom – ’02
1100 Sq. Ft
Large 2 Bedroom
2 Bathroom – ’09
1200 Sq. Ft
Unit Photos
Unit Photos
On-Site Amenities
■ Outdoor Pool On-Site
■ Exterior Courtyard with Grills
■ Laundry Facility On-Site
■ Controlled Access
■ Fence Parking Lot (85 Spaces)
■ Security System
■ On-Site Maintenance
■ Multi-Use Room
■ On-Site ATM
■ Lounge
■ Salon/Barber Shop On-Site
■ Package Service
■ Tenant pays for HEAT and Electric
Midtown
Area Retailers Include: Carhartt, Common Pub, Detroit Historical
Museum, DIA, Peacock Room, Chartreuse Kitchen and Cocktails, Wasabi,
Frida, Macabees, Comerica Park, Ford Field, Little Caesars Arena, Wayne
State University, College for Creative Studies, Whole Foods, City Bird, Tony
V’s Tavern and Many More.
Comparable Rental Properties Summary:
Property Units Built Occupancy Avg. SF Asking Rent Rent/ SF
Belcrest Apartments 145 1926 91% 882 $900.00 $1.09
Heather Hall 70 1924 85% 507 $1,057.00 $2.09
Finn Apartments 30 1922 95% 450 $973.00 $2.16
Villa Lante 29 1916 100% 427 $992.00 $2.32
Forest Arms 71 1905 85% 781 $1,311.00 $2.21
Strathmore 129 1929 100% 868 $1,395.00 $1.79
Studio One 124 2008 90% 612 $1,508.00 $1.74
The Isabelle 30 1913 98% 423 $1,033.00 $2.44
The Plaza 72 - - 988 $2,345.00 $2.37
Union at Midtown 81 2011 95% 1,135 $2,196 $1.97
Rent and Occupancy Demographic
91%
92%
93%
94%
95%
96%
97%
98%
2012 2013 2014 2015 2016 2017 2018*
Projected Detroit Metro Apartment Market
Rent Occupancy
EFFECTIVE RENT
$951
In June, 2018 up 2.6% from on year prior.
OCCUPANCY RATE
96.5%
Through 2Q18 down, 10 basis
points annually
2016 was a strong year for new deliveries in Greater Detroit, causing occupancy to fall slightly.
Billion of dollars of new investment are being poured into the Central Business District (CBD),
creating additional supply as well as jobs. Despite an increase in recent supply, demand for new
units is causing strong rent growth with increases above the metro's historical and national
averages.
As of June 2018, average effective rent in the Detroit metro apartment market was $951 per
month, up 2.6% from one year prior. By the end of 2018, average effective rent is projected to
reach $963, equating to an annual increase of 3.4%. Since 2012, effective rent in Metro Detroit
has increased by 16.6%
Through the first half of 2018, the metro's occupancy rate decreased 10 basis points annually to
96.5%. By the end of 2018, the market's occupancy rate is projected to decrease 50 basis points
year over year, to a still healthy 95.9%.
Midtown Detroit New Development
■ The Boulevard
Heralded as the first new-construction residential development in New Center in 30 years, the $54.6 million The Boulevard draws together residential and commercial components on 1.5 acres. It’s 231 apartment units are an 80-20 split between market and affordable pricing. The Boulevard, developed by Detroit-based The Platform, also offers 17,5000 square feet of retail space and 330 parking spaces.
■ Baltimore Station Phase I
Development will consist of 23 loft apartments on Woodward Avenue with 10,000 square feet of first-floor retail, and 24 parking spaces. The cost of the first phase is projected to be $7.6 million. The project features great connectivity, with a Qline stop, bus lines, MOGO bike stations, and train station in the immediate vicinity. Baltimore Station Phase I is scheduled to be complete winter 2018.
Midtown Detroit New Development
■ The Woodward @ Midtown
A $31 million, mixed-use development dubbed The Woodward @ Midtown generating excitement as it will fill the last large vacant area that has remained and eyesore in Midtown Detroit. Due to break ground October 2018, The Woodward @ Midtown will include 104 residential units, 11 of which will be designated affordable, and 15,000 square feet of retails space and 160 parking spaced on two floors. The development will be on vacant land bounded by Woodward Avenue to the east, Stimson Street to the north and an alley to the south.
Baltimore Station Phase II The second phase of the Baltimore Station development project started
construction October 2018. The development is slated for 138 apartments
with an additional 9,000 square feet of retail, and a total size of 115,000
square feet. There will also be 110 valet parking spaces. The building will
offer both furnished and unfurnished co-living and private apartments. The
scheduled completion is Summer 2018.
Midtown Detroit New Development
■ The Corner
The residential development call “The Corner”, led by Eric Larson and
Larson Realty Group, will now take shape at the site of old Tiger Stadium.
The #30 million mixed-use development will have 111 modular residential
units – studios, one – and two – bedrooms – plus 26,000 square feet of
retail. The palate of colors in the buildings façade will reference the areas
baseball history. Construction should be complete February 2019.
■ Alamo Drafthouse Cinema 90
The Alamo Drafthouse s set to open a nine-screen, first-run movie theatre on
the vacant land owned by Detroit Water and Sewerage Department west of
Woodward and south of Martin Luther King Boulevard. The three parcels we
purchased for $1.5 million. Proceeds from the land sale are expected to
assist with programs for water and sewer improvements. The construction is
expected to start in late 2018 with an expected opening in 2020. The
opening of the Alamo Drafthouse will bring increased tax revenue and job
opportunities to the Midtown district. The estimated cost of construction for
the project will be greater than $13,000,000.
