(To read more on the multifamily market, click here.)
(Natalie Keith is a contributing writer to GlobeSt.com.)
KENTWOOD, MI-A four-building, 724-unit apartment portfolio was sold for $17.1 million, a sale valued at $28 per sf. The portfolio consists of Hunters Ridge at 4552 Hunter South Ridge Dr., Breton East and Breton Court at 4645 Drummond Blvd. and Walnut Hills at 4141 Walnut Hills Dr.
Sellers in the transaction were Breton Court Associates, LLC/Breton East Associates, LLC/Hunters Ridge Apartments Associates and LLC/Walnut Hills Associates. Buyers were TG Walnut Hills LLC, TG Brenton East LLC, TG Hunters Ridge LLC, and TG Brenton Court LLC. All entities are based in Farmington Hills. The sellers assumed the existing Fannie Mae mortgages.The portfolio was listed at $19.54 million. The sale was negotiated by Kevin Dillon and Dave Walstrom, agents located in the Detroit office of Phoenix-based Hendricks & Partners.
Built in 1974, Hunters Ridge consists of 10 two-story garden-style apartment buildings with 120 units that rent for an average of $649 per month. Built in 1976, Breton East consists of seven two-story buildings with 216 units that rent for an average of $593 monthly. Walnut Hills was built in 1968 and contains 14 2.5-story buildings with 168 units with an average monthly rent of $643. Breton Court was built in 1970 and contains 10 two-story buildings with 220 units with an average rent of $605. Currently, Hunters Ridge, Breton East and Breton Court have a 12% vacancy rate. Walnut Hills has a 5.2% vacancy rate.
Dillon tells GlobeSt.com that the new owners of the portfolio are planning to make substantial capital improvements to the properties. Renovations to the units will include new appliances, countertops and flooring in the kitchens and upgrades to the bathroom, such as new lighting. Renovations will include upgrades to the hallways and other common areas and landscape improvements. "They basically want to make it a much more attractive property."
Home to the headquarters of furniture manufacturers Steelcase and the Kent County International Airport, Kentwood is part of the Grand Rapids MSA.
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