2619 O`Brien St. SW

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2619 O`Brien St. SW
2619 O’Brien St. SW
GRAND RAPIDS, MICHIGAN
An Investor Prospectus
Lola Audu
Audu Real Estate
PRESENTING 2619 O’BRIEN ST. SW, GR MI
GRAND RAPIDS MI
EXECUTIVE SUMMARY
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2619 O’Brien SW, Grand Rapids MI: Rare public offering for residential development just 8
minutes from downtown Grand Rapids, Michigan - one of the nation's fastest growing
commercial and residential marketplaces. The location also provides ready access to the
Medical Mile through expressway access or meandering scenic country roads.
Phase 1 construction was designed and completed 20+ years ago. It is a gracefully matured
community with 19 custom designed homesteads. Detailed attention was given to preserve
picturesque natural landscaping and wildlife habitats. MLS #: 16039910
LOLA AUDU l AUDU REAL ESTATE l WWW.AUDUREALESTATE.COM l 616-791-0511
EXECUTIVE SUMMARY
Meet Dr. Taylor:
Dr. Taylor, a retired pediatrician has owned the
parcel of land since 1968 and was instrumental in
developing Phase 1 of West Way Woods. The
successful development features executive style
homes many of which featured prominently in the
Grand Rapids Parade of Homes.
Dr. Taylor’s strong adherence to land preservation
resulted in a community which even at its inception
was graced by mature trees, many of which were
intentionally planted by Dr. Taylor.
Throughout the years, Taylor has continued to
maintain the surrounding land by planting trees,
clearing trails, harvesting timber and managing and preserving the wildlife habitat with deep
care and concern. This has resulted in a community which has the feel of a haven of respite
just minutes from the surging heart beat of the larger city.
QUICK STATS
MLS IDENTIFIER www.grar.com
Listing Price:
Acreage for Sale: (Phase 2)
PPN: (Phase 2)
Number of current Homesteads (Phase 1)
Price point (range of homes in Phase 1 plat)
Number of potential Homesteads (Phase 2)
Average Price per improved lot (when platted)
#16039910
$1,500.000
27.66 Acres
411328409007
19
$325,000 - $700,000
Potential for 37+
$66,000 (based on number of lots)
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NOTES: Phase 2 received preliminary site plan approval during the original site design and
approval process for Phase 1. The 19 existing lots of Phase 1 include 2 homes in which
homeowners own double lots.
Buyer responsible for obtaining necessary municipal clearance for development. The original
plat has had remarkably little turnover since its development approximately 25 years ago.
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The map above comprises of Zillow ‘Zestimates’ of current property values in Phase 1. Three
homes have been built or significantly upgraded within the past 12 years. There have been 5
sales of property or homes within the same time frame.
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During the recent economic recession, the homes that were sold in Phase 1 maintained their
equity values at a higher rate than most homes within the surrounding community.
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CURRENT MARKET ANALYSIS
(CMACOMPARABLE HOME
The overall demand for housing supply in West Michigan has remained very strong over the
past 36 months. The area has historically posted moderate sustainable year over year
averages of between 3-5%, but the past 3 years have revealed market shortages which flew
under the radar. The chart below documents how inventory levels have fluctuated and evolved
prior to, during and after the recession.
The rental market has been even more competitive as housing units in the downtown area are
consistently averaging 1-2 % vacancy rates and the greater metropolis has witnessed 3-4%
vacancy rates. Landlords can anticipate 5-10% increases in rental rates and still be
competitive. The purchase market is also posting historically low inventory levels. Whereas a
‘balanced market’ would typically feature 6-7 months of housing inventory available for sale;
inventory levels have remained below 3 months of supply for much of the past 12 months.
There is a definite need for new housing stock to meet the demand.
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Read National Association of REALTORS Economist Lawrence Yun’s opinion regarding the role
housing supply (or rather a lack of it) is playing in current home pricing. (March 2016)
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DAYS ON THE MARKET:
For most of the year, the average days on the market for single family homes have been below
60 days. This is compared to an average of 160-180 days in a balanced market. REALTORS
are reporting multiple offer bidding wars on many properties and are advising clients to be
prepared to bid over market value in certain situations.
WEST MICHIGAN LUXURY MARKET:
Higher priced homes (defined as listings above $300,000 and up to $1,000,000) are currently
above 10% of the market activity.
Average Retail Pricing of Homes in West Michigan is currently $187,000.
# HOMES FOR SALE
142
180
166
% OF CURRENT SALES
13% (approx)
15% (approx)
14% (approx)
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MONTH
May, 2016
June 2016
July 2016
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DEVELOPMENT PRICE ANALYSIS:
Phase 2 planning was provided by Engineering company Moore and Bruggink Inc. It calls for
37 lots in Phase 2 sized at approximately 0.75 acres to 1 acre. Access points for utilities are
from the following streets: Collindale, Shire, Arabian Way and O’Brien. Utilities available from
the street include: public water, gas, storm sewer, electric, telephone, cable and broadband. A
copy of the proposed Phase 2 plat is highlighted below.
Based on conversations with developers and engineers familiar with projects of this nature,
there is an assumption of $25,000 in improvements per lot for streets, sewer, water service,
utilities, clearing of the land. This estimate is not binding and simply represents the best
estimates that are available based on preliminary analysis and investigation. It does not
represent any costs which may be required due to DEQ evaluations and/or requirements.
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LOT PRICE AT 37 LOTS (1 ACRE approx): $41,000 + $25,000 (improvements) = $66,000
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OUTLINE DRAWING FOR PHASE 2
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As of August 2016, there are currently 21 large parcels in Kent County listed on the Grand
Rapids Association of REALTORS Multiple Listing Service between 10 - 50 acres. Most of
these properties are in Byron Center with a sprinkling in Ada, Lowell, Caledonia and Comstock
Park. Currently, there is no other offering in Kent County which enjoys this level of proximity to
the downtown Grand Rapids corridor and is adjacent to a community of higher priced
developments. Other developments in the area which are comparable are Serenity Ridge and
Canyon Creek Estates. Homes in these developments range from $450,000+ and are situated
on acreage which require septic systems and wells. In contrast, 2619 O’Brien (West Way
Woods) will not require the additional costs of installing septic systems and wells, and utilities
can be accessed from several points bordering the property.
LOLA AUDU l AUDU REAL ESTATE l WWW.AUDUREALESTATE.COM l 616-791-0511
COMPARABLE NEIGHBORHOODS:
Average Lot Price will be approximately 1/4 price of average home
Name: The Preserve - Ada Township
Location: Preservation Dr NE, Ada, MI 49301
Price Point: $500,000+
Name: Sanctuary Condos - Forest Hills
Location: Sanctuary Dr NE, Grand Rapids, MI. 49301
Price Point: $350,000+
Name: Jonathan Woods Estates
Location: Jonathan Woods Dr SE. Grand Rapids, MI. 49301
Price Point: $500,000+
Name: Tammarron North
Location: Laraway Lake
Price Point: $750,000+
Name: Manchester Hills
Location: Manchester Hills Dr SE, Grand Rapids, MI 49546
Price Point: $650,000+
Name: Serenity Ridge
Price Point: $450,000+
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Location: Butterworth St. Grand Rapids MI
LOLA AUDU l AUDU REAL ESTATE l WWW.AUDUREALESTATE.COM l 616-791-0511
BROKER OPINION:
Most of the communities which are comparable to West Way Woods are located in Cascade
and Ada Township. The downtown corridor of Grand Rapids is undergoing a period of rapid
expansion. Downtown Grand Rapids Inc. has drafted a report highlighting projects, expansion
and growth planned for the city. The plan was recently approved. The case for investment and
capital construction in the Grand Rapids metropolis has been successfully made. The area has
dominated a number of nationwide surveys and lists in recent times including being named on
the best places to live, invest and raise a family. The only avenue available for expansion from
the downtown corridor is the West side. 2619 O’Brien St. SW MLS # 16039910 represents one
of the best options available in the fact that it is:
1. Easily accessible by expressway
2. Close to downtown area businesses, the Medical Mile
3. Represents a unique serenity, yet accessible to shopping, parks, schools
4. Grandville School system - Blue Ribbon School and well regarded Cummings Elementary
Today, the location can readily support construction in the $400,000 price range or above,
making the price per lot very competitive. To this end, the Broker has already received several
inquiries regarding an interest in purchasing a lot when Phase 2 is platted. These names and
phone numbers may be forwarded to the future Buyer/Developer at the Owner’s discretion.
FOR ADDITIONAL INFORMATION:
Contact: Lola Audu, CRS, PMN, GRI, E-Pro (Contact Beth 616-821-5430 for preview schedule)
Web: www.audurealestate.com
Phone: 616-791-0511
Additional documentation is available upon request to include:
*Reports from City of Grand Rapids & Moore & Bruggink
*Drainage and Sewer Assessment
*Plat map of Phase 1
VIDEO LINK PREVIEW WEST WAY WOODS: Click to watch video.
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LOLA AUDU l AUDU REAL ESTATE l WWW.AUDUREALESTATE.COM l 616-791-0511
SOURCE CREDITS:
1. Grand Rapids Association of REALTORS website and statistics: www.grar.com
2. Grand Rapids Press: www.mlive.com
3. Zillow: www.zillow.com
4. County Website: www.accesskent.com
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5. National Association of REALTORS Residential Property Resource
LOLA AUDU l AUDU REAL ESTATE l WWW.AUDUREALESTATE.COM l 616-791-0511