2619 O`Brien St. SW
Transcription
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 Page 2 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) Page 3 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. LOLA AUDU l AUDU REAL ESTATE l WWW.AUDUREALESTATE.COM l 616-791-0511 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. Page 4 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. LOLA AUDU l AUDU REAL ESTATE l WWW.AUDUREALESTATE.COM l 616-791-0511 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. Page 5 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) LOLA AUDU l AUDU REAL ESTATE l WWW.AUDUREALESTATE.COM l 616-791-0511 6 Page LOLA AUDU l AUDU REAL ESTATE l WWW.AUDUREALESTATE.COM l 616-791-0511 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) Page 7 MONTH May, 2016 June 2016 July 2016 LOLA AUDU l AUDU REAL ESTATE l WWW.AUDUREALESTATE.COM l 616-791-0511 8 Page LOLA AUDU l AUDU REAL ESTATE l WWW.AUDUREALESTATE.COM l 616-791-0511 9 Page LOLA AUDU l AUDU REAL ESTATE l WWW.AUDUREALESTATE.COM l 616-791-0511 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. Page 10 LOT PRICE AT 37 LOTS (1 ACRE approx): $41,000 + $25,000 (improvements) = $66,000 LOLA AUDU l AUDU REAL ESTATE l WWW.AUDUREALESTATE.COM l 616-791-0511 OUTLINE DRAWING FOR PHASE 2 Page 11 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+ Page 12 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. Page 13 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 Page 14 5. National Association of REALTORS Residential Property Resource LOLA AUDU l AUDU REAL ESTATE l WWW.AUDUREALESTATE.COM l 616-791-0511