THE LANDING
179
units
$43,017
price per unit
8.11%
cap rate
“The NAI Multifamily Team introduced Trillium to a 180 unit apartment community in Kalamazoo, MI. Craig Black and Scott Nurski provided excellent communication between both parties to facilitate our acquisition of the property. NAI acted as liaison between the Seller and our team to provide ongoing due diligence materials vital to bringing the transaction to close. The property proved to be a great addition to our portfolio and we appreciate Craig and Scott’s work on this deal. We look forward to working with NAI on future deals.”
-Dan Meyering, Trillium Ventures MSV
Challenge
The NAI Wisinski of West Michigan Multifamily Team was given the challenge to market and sell an apartment asset at an aggressive price, but within a short time period. The owners’ mortgage was maturing and the ownership group was deliberating whether they should sell or refinance. The property is a 180 unit, flat roof, 40 year old apartment community in Kalamazoo, MI. It is located near the Western Michigan University campus and competes with a much newer inventory of student housing options. The physical structures were in very good shape, but the unit interiors were dated. The resident profile of the community was primarily comprised of students (approx. 70%).
Action
The ownership gave us a relatively narrow window to resolve their dilemma. We scrutinized our extensive multifamily database and in a very short timeframe were able to identify the most likely candidates for this asset type, size and location. Days later, we produced an offer on the property. The owners felt that the offer was more attractive than refinancing, so a sale was consummated.
Result
The buyer that we produced, although not from this market, had a history of managing student housing in West Michigan. The property acquisition allowed them to enter a market that they had long been considering. It also fit their investment profile, being that it provided a “value add” component. NAI was able to bring an offer to the owner that was very attractive to their partnership. Both buyer and seller were able to meet their investment objectives as a result.