Park Place Apartments is a stabilized 16 unit apartment building located in Dewitt, MI. The units are all two bedroom one bath, approximately 800 square feet with their own separate entrance. There are four buildings total, with over two parking spots per unit. The property is 100% occupied grossing +$17,500 per month, with an annual gross potential rent of $233,786.
The apartments were built in 1972 on a slab and siding on the second level. Each unit is separately metered for and electricity and gas, which the tenants pick up those bills, and the landlord pays for water and trash. There is a common washer and dryer for each building for the tenants to use. There are four units in each of the four buildings. The property is equipped with forced heat and AC - each unit has an individual furnace and exterior condenser. Tenants are billed back for utilities, currently about $900 per month.
The Opportunity
The average rent at Park Place is currently $1,100 per month, which is under-market by about $100 compared to what is currently being rented at the property. Proven rental increases through interior renovation have taken place in 10 of the units at the property. A +- $10,000 upgrade, including vinyl plank flooring, new paint, new kitchen appliances and counters, new tub, toilet, and counter in the bathroom have pushed rents to $1,200 + $50 RUBS payment based on the last lease, leaving "plenty of meat on the bone" for the next owner. Increasing the rents to $1,200 from the current average rent of $1,100 would increase the NOI by $19,200 which is $256k in value. Based on the $10,000 upgrade, this is a 32% return on investment.
Sales Process
GD will offer tours of the property the week of January 26th. After that week, a call to offers will be held on February 2nd. Offers that are submitted before either of these dates will be considered and potentially accepted.
Location
Dewitt, Michigan is a wealthy superb of Lansing, Michigan. Lansing is the capital of Michigan, and also home to Michigan State University. Dewitt is a 15 minute drive to downtown Lansing, and is known to be an town for people to building new construction homes on 5 to 10 acre lots. Downtown Dewitt consists of several newer restaurants, cafes and a brewery. This is all less than 1 mile from Park Place. Dewitt and Park Place allows for someone to rent in a more rural setting, which still being a quick drive to thousands of jobs and the city.
Economically the average household income within 1 miles is north of $128,000, and the median income is over $101,000. The average home costs over $365k in Dewitt which is a 9% increase from 2024. With todays rates of over 7.5%, the average mortgage including insurance and taxes is over $2,800 per month. This is 150% higher than the highest achieving rent at the property. As property values continue to increase in Dewitt, the rents are going to follow.
