potomacduc

April 20th, 2018 at 10:26 AM ^

There's a TH in Ashley Mews listed at $700k. For 358 days of the year, that's arguably a better location, unless the train tracks bother you.

The question is how much the novelty of being right across the street from the stadium is worth. Somewhere around $700k woud make sense, but it only takes 4 buyers to get excited about the location so it wouldn't suprise me to see units go for $800k+.

That's a lot of money in a town with a median household income of maybe $60k.

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Blue in Paradise

April 20th, 2018 at 10:36 AM ^

This is a trophy property for wealth UM alum and former players.  From an investment standpoint, you would look to make your money back on weekends in the fall.  You could get maybe $5k for rivalry weekends and $2-3k for other games.

This is the closest thing you will find to a stock that moves based on the quality of UM football program :)

If Michigan gets back to be being a top 5 team on the regular - I bet you could get $10k+ for an OSU home game weekend in a few years.

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potomacduc

April 20th, 2018 at 5:30 PM ^

Even in a best case scenario, 7 home games and year with 2 rivalry games (if that ever happens again), you are looking at ($5k*2)+($3k*4) = $22k for game day weekends. Renting it out for game days pretty much wraps up what you're going to get out of it in the fall. I suppose you could rent it for $2k/month the rest of the year...maybe. That would be another $16k.

That means we're looking at $38k a year in revenue. Let's say you pay cash and expenses run 15%. That gets you down to a very optimistic $32,300/year in revenues for a $700,000 investment. That's less than 5%. Even if you get the occasional $10k weekend, that will be offset by the years with a crappy home slate and 6 home games. 

I think it's hard to see this as an investment. You won't lose your shirt, but there are lot of better places to put your cash if return matters.If you have to finance it, forget about it.

If it's a "trophy" property, it's ugly and it has only location going for it. I suppose the interior could be fabulous and all that glass would allow you to capture the view and feel of being across from the stadium. 

That being said, it will sell and probably for over $700k, maybe well over. As I said, it only takes 4 people to get excited by the idea. Ultimately it is worth what someone is willing to pay for it. 

 

 

 

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Blue in Paradise

April 21st, 2018 at 5:42 PM ^

Around $30k if the selling price is $1M or approx $21k at $700k. Either way, impossible to make money at this price just based on football weekends. I mentioned in a separate post that you would have to figure out a way to rent this out the rest of the year for this to make sense as an investment. Do people fly up for weekend basketball / hockey games on the regular? I haven’t heard much about that but if you would tap into that market- the numbers would look better.

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NYC Fan3

April 20th, 2018 at 10:02 AM ^

2 bedroom 3 bath 2 car garage, but a 4 story home.  

Unique layout with the 1st bedroom on floor 3 by itself (open space over looking family room below?) and 2nd bedroom on 4th floor with outdoor patio.

What type of price do you Ann Arbor real estate folks expect?

 

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Blue in Paradise

April 20th, 2018 at 10:05 AM ^

And they are going to be fantastic - but pricey (IIRC, they want $1.2M).  I would hold off to see if the market can absorb that number.

If so, good on the Wickfield guys.  If not, then it could be a good buying opportunity.

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Blue in Paradise

April 20th, 2018 at 10:13 AM ^

http://thewestgateresidences.com/

Much, much bigger and they are asking (IIRC) $750k at the high end.  Now, Tuscaloosa is much, much cheaper than Ann Arbor and the Bama alum/fan base does not have nearly the money cannon that UM does.

OTOH, Bama fan base even more rabid tham UM and, of course, they are at the summit of college football.  Let's see how this plays out.

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oriental andrew

April 20th, 2018 at 11:50 AM ^

Tuscaloosa is not remotely comparable to AA from a real estate perspective. Avg home value in Tuscaloosa is about $140k, with median short of $180k. The average and median home values in AA are both around $350k - or at least twice that of Tuscaloosa. 

So yeah, factor in a bigger condo unit right next to their stadium and that it's almost half million less than the AA development is not at all a surprise. 

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Blue in Paradise

April 20th, 2018 at 12:06 PM ^

than UM right now.  To be fair, it is higher at Bama than anywhere right now.

Bama also has a ton of wealthy alum, and NFL stars (past and present) that are not going to be price sensitive.  And those people are highly motivated right now to get a piece of Bama football.

If UM were to get even close to Bama's suceess, we would see that UM has the biggest money cannon for any school in the country.  Only OSU, Texas and Texas A&M are even close.

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CLion

April 20th, 2018 at 11:33 AM ^

You could make an absolute killing air b'n'bing these. I doubt there is going to be much of an open market for these or if any are really on the open market, it's going to be a bidding war.

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Blue in Paradise

April 20th, 2018 at 11:38 AM ^

Don't forget that you need to cover $30k + in property tax plus maintenance before you have a positive p&l.

If you can find a way to rent them out from Dec - Aug, then they can be a great investment.

Example - is it possible to find grad students with cars who do internships / semester abroad during the fall and then rent to them for winter, spring and summer? 

Could be possible, if so - this would work at $1.2M.  Otherwise, will be tough to do this as a short term rental at the asking price.

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samsoccer7

April 20th, 2018 at 12:16 PM ^

Did anyone see that the building goes east west? Therefore the west side units aren’t gonna have a good view of the stadium. Basically the easternmost one will be a trophy property but the rest are meh I think.

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Coldwater

April 20th, 2018 at 12:57 PM ^

Notre Dame has an entire housing development near their sports facilities called Eddy Commons. It’s really modern, really cool. I’d live in something like that at Michigan

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