Holiday Gardens Apartments

Holiday Garden Apartments is located in Mount Clemens, Michigan conveniently off of Highway 94 and Highway 59. The property consists of 64 units – 28 which are section 8 vouchers and the remaining 36 are market rate. Currently the property is 95% occupied grossing over $45,000 per month.
The property is located right off N River Rd overlooking the Clinton River. There are 122 parking spots – 38 of them covered for the 64 units boasting plenty of room for residents. 21 of the 64 units have been renovated including new appliances, kitchen tile, bathroom tile, carpet and paint. The renovated units have seen rent increases of at least $100 per unit. The units are furnished with AC units and hot water baseboard heating. There are four buildings total – three of them are for apartments and one is a small leasing office which is also a unit (not included in unit count). There is a washer and dryer in each basement which services 8 units (6 basements). There are also storage units under the property which collect an additional $15 per month. About half of the tenants are paying a RUBS fee of $20 - $35 per month.

The building is currently producing strong income however from our market study GD has determined the building has room to increase rents by $75 - $150 per door. Some of the units are not paying “other income” like new tenants, which is another area to increase revenue. This would increase the gross revenue by about $100,000 per year increasing the value by about $1,166,000 based on the entry CAP rate.
Several new developments are occurring within a 5 mile radius of the property. The Henry Ford Macomb County Hospital recently announced a $360MM addition to the campus which is a 10 minute drive from Holiday Gardens. McLaren Macomb Hospital also recently announced a new 65,000 square foot addition to their campus, which is two miles from the property. These additions will bring thousands of jobs to the area which will call for an increase in demand for work-force housing, along with an upward pressure on rents.