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One11 Hamtramck is a mixed use commercial / residential space on the busiest street in Hamtramck, MI. This investment consists of four commercial spaces consisting of 3,860 rentable square feet, and ten residential spaces consisting of two studio units and eight 1 bedroom units for an additional 4,551 rentable square feet. Currently the property is 100% occupied
Hamtramck has seen year over year growth as property values have increased by 110% since 2017. With property values and rental rates increasing in the city of Detroit, Hamtramck is a hotbed for millennials and students to reside in. This migration has triggered entrepreneurs to start opening up shop in Hamtramck. Hip and new retailers such as Oloman Cafe´, Wheelhouse Detroit, and Bon Bon Bon have moved in to the City. The property makes for a stable long term investment due to the lack of supply for apartments on the busy, popular street of Joseph Campau. The commercial leases are long term - and several of the tenants have been at the property for 10+ years.
The property is being offered at a 7.5% CAP rate in place, offering great cash flow from day one. There is some value-add that the buyer can take advantage of by increasing the apartment rents. The current average rent in the building for the apartments is $1,009, where some of the rents are up to $1,175. Increasing the rents to this level will increase the NOI by $24,360 per year, which is an increase in value by $324,800 based on the entry CAP rate. This would increase the stabilized CAP rate to 8.25%+, an incredible return in this market.