We are pleased to present an multifamily portfolio opportunity comprising 8 properties and 202 units across Central and Northern Michigan. This diversified portfolio offers strong current performance with significant value-add upside through rental optimization and operational enhancements.
Affordable housing offers predictable cash flow driven by non-discretionary demand, regulated rent structures, and historically strong occupancy. While rent growth is governed rather than aggressive, revenue volatility is materially lower than traditional market-rate assets. The result is a durable income stream with reduced downside risk across economic cycles
Key Investment Highlights
Sale Price: $9,500,000
Current Cap Rate (in-place): 7.00%
Pro-Forma Cap Rate: 11.50%
Current NOI: $669,715
Blended Occupancy: 95%
Total Building Area: ~150,000 SF
Portfolio Overview
The Mid Michigan Portfolio consists of eight rental communities built between 1982 and 2007. The mix includes one-, two-, and three-bedroom units, offering broad appeal across renter demographics. Six of the eight assets are affordable housing communities with USDA Rural Development financing, and the remaining two are former LIHTC properties now under MSHDA credit enhancement structures.
Value-Add Potential
Current financials suggest the portfolio is under-rented relative to allowable USDA and MSHDA rent ceilings. Phased rental adjustments, aligned with market thresholds and financing guidelines, could materially increase revenue and investor returns:
• Annual NOI growth potential supports
— Expanded cash-flow returns
— Enhanced pro-forma valuation metrics
• Cash flow surplus accumulates in operating accounts until loan maturities, which presents optional refinancing or mortgage retirement strategies later in the investment hold period.
Considerations
– USDA financing constraints currently restrict annual distributions at six properties through 2040–2043; this limitation can be mitigated with a long-term financial strategy that maximizes retained earnings and potential recapitalization.
– Upside through rent growth and professional asset management can drive substantial yield expansion.
Property List
Mariner Cove Apartments – 6550 King Rd, Marine City, MI (56 units)
Matteson Street Apartments – 130 N Matteson St, Capac, MI (24 units)
Townline Apartments – 81 Timber Lane, Pellston, MI (30 units)
Pond Street Village – 759 Pond St, Mackinaw City, MI (32 units)
Cobble Creek 2 – 402 Knight St, Grayling, MI (20 units)
Meadowrun Apartments – 311 W Limits Rd, Mancelona, MI (16 units)
Carson City Senior Apartments – 510 N 2nd St, Carson City, MI (24 units)
Presented by OakPointe Advisors and Greater Development.
Michael McClafferty - C: 248-972-7040 E: [email protected]
Brady Williams - C: 360-989-5395 E:brady@greaterdevelopment.net