For Sale: High Yielding Michigan VALUE ADD Apartment Portfolio.

André Bueno
Jul 23, 2017 · 3 min read

Our team is entertaining off-market offers for our VALUE ADD portfolio (around 300 apartments) located in the state capitol of Michigan (Lansing).

Message me on LinkedIn today if interested: www.LinkedIn.com/in/BuenoBomb

Summary: Strong value add opportunity that will be listed at a 7% unlevered yield (cap. rate) with 25%+ of upside potential!

Background: 80% of the business plan was executed and we are leaving the easiest part for the incoming investor.

Highlights: 90% of the apartments have been renovated, 30%+ of the rents are below market, and we recently implemented a utility reduction program via HVAC and Mechanical system upgrades. Recently we upgraded the majority of the toilets, faucets, and aerators to reduce our water consumption.

THE VALUE ADD OPPORTUNITY

Increase revenue by:

  1. Raising the rents to the market rate; one bedroom apartments are at $630 and two bedroom apartment rents are at $750 (average rents are up 8.7% year-over-year).
  2. Adding an in-unit Washer and Dryer hookups to rent machines to the residents (because who wants to use communal laundry?)
  3. Implementing a parking system for assigned covered parking (Michigan Energy Options Case Study*)

* We were selected by the State of Michigan to participate in an innovative pilot program that identified how to make our communities more energy efficient while improving our the Net Operating Income, all the while increasing the quality of life for our tenants and reducing our carbon footprint.

Reduce Operating Expenses by:

  • Leveraging PACE and a Solar Tax Credit to finance the installation of Solar panel carports. This will add an additional revenue stream along with offsetting electricity consumption.

Why we are selling? We are narrowing our focus on our west coast platform given our pipeline of new construction and redevelopment opportunities.

Message me today if interested (click here to redirect to LinkedIn): www.LinkedIn.com/in/BuenoBomb

André Bueno

Written by

@Forbes Contributor | Former I-Banker at Goldman Sachs and Morgan Stanley | Impact Investment Expert

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