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4-Property Multifamily Portfolio in Kalamazoo, Michigan

Available as a Portfolio or Individual Sale

Portfolio Overview

Berkadia is pleased to present the exclusive offering of the West Michigan 4 Properties portfolio. This portfolio consists of 427 units at four communities in Kalamazoo, Michigan. Kalamazoo is just 50 minutes south of Grand Rapids, Michigan. Greenbriar Apartments (61 Units), Embassy Terrace (85 Units), Carriage Green Apartments (137 Units) and Regency Square Apartments (144 Units) are all perfectly located within this southwest Michigan city.

This portfolio provides a rare opportunity to purchase value-add communities where the heavy lifting has already been done. The current owners have impeccably maintained these properties and have invested millions of dollars in CapEx over the last several years. That means most big ticket items are already completed. For example, every roof and most boilers have already been replaced within the last nine years. Three of the four communities also have new windows, new cement board siding, and new patio sliding doors. Better still, the current owner’s original intent was to own and operate these assets for another decade or more. As such, all improvements were done with the long term in mind. Investors will appreciate and benefit from the fact that all building materials and construction designs were chosen to provide years of high quality and hassle free service.

These communities are all very successful. It’s clear they have a proven story. Most of the staff is long term and all are highly competent. Occupancy, delinquency, and organic rent growth have been outstanding. With major CapEx items out of the way, a ton of low hanging fruit appears. Renovated units are easily leased while existing units remain highly desirable. Investors will also have the ability to rapidly expand through new construction on two vacant contiguous parcels that come with the portfolio. This dramatically bolsters the value add potential. Furthermore, this core group of assets could be used as a base of operation to acquire numerous surrounding tuck-in acquisitions. For example, a third contiguous vacant parcel is currently available for sale from an unrelated party. All of these properties are in the Kalamazoo Promise Zone which offers free college tuition to students who graduate from Kalamazoo Public Schools. This is a spectacular opportunity to gain a foothold in a stable and solidly growing region

Carriage Green stands out as an amazing investment in the heart of a thriving area. It is comprised of 137 Units, 38 of which are brand new this year. Visibility is spectacular because it sits a few hundred yards from one of the busiest intersections in West Michigan with road frontage of nearly 31,000 vehicles per day. This wonderful location is between Downtown Kalamazoo and US-131. It is on the main bus route and a short distance from Western Michigan University, Kalamazoo College, and numerous other businesses and attractions. Situated on 7.62 acres of land with a density of 17.98 units per acre, Carriage Green encompasses an ideal unit mix comprised of 51 one-bedroom units measuring 800 square feet each, and 86 two-bedroom units spanning 960 square feet each, with an average unit size of 900 square feet. Surrounded by mature trees, this property is well-maintained and beautifully landscaped with manicured grass areas, trimmed shrubs, and colorful flower beds.

Regency Square is an exceptional opportunity for investors to own an established community with tremendous value-add upside potential. This 144-unit, garden-style apartment community is located on more than 7.97 peaceful acres with a large, beautiful courtyard. This tranquil setting is a secret gem just 100 yards from a Westnedge Avenue intersection that regularly sees vehicle counts exceeding 27,000 cars per day. Built in 1968, the property contains six, three-story, masonry constructed buildings with brick and metal shingled mansard style roof shakes. Regency Square encompasses an ideal unit mix comprised of 48 one-bedroom units measuring 729 square feet each, and 96 two-bedroom units spanning 1,123 square feet each, with an average unit size of 992. The land itself offers several additional value-add possibilities. There is a vacant, contiguous parcel that comes with this property that could be used to build a new leasing office. That would allow the existing office to be converted into an exercise center. Additional green space could also be used to build a row of townhomes. The exact number would be determined by zoning approvals.

Embassy Terrace represents an exceptional investment opportunity. This 85-unit community is situated off West Main Street and has extremely strong visibility. This community sits less than a mile from an intersection that regularly sees almost 31,000 cars per day. Embassy Terrace is also perfectly located to the Western Michigan University campus and an abundance of national retailers, restaurants, and entertainment. Built in 1967, the property contains eight, two and two and one-half-story, wood-framed constructed buildings with brick and vinyl exteriors and pitched roofs with composition shingles. Situated on 2.86 acres of land with a density of 29.72 units per acre, Embassy Terrace encompasses an ideal unit mix comprised of 15 one-bedroom units measuring between 560 and 880 square feet, and 70 two-bedroom units spanning between 800 and 1.025 square feet, with an average unit size of 883 square feet. Bordered by a mature wooded forest, the property is well-maintained and beautifully landscaped with manicured grass areas, trimmed shrubs, and colorful flower beds.

Greenbriar is a 61-unit, garden-style apartment community located within close proximity to the other three assets in the portfolio and offering new ownership the ability to create and implement significant economies of scale. Built in 1967, the property is strategically situated between Western Michigan University, Kalamazoo College, and Downtown Kalamazoo. The property contains two, three-story buildings with brick exteriors and pitched shingled roofs. Situated on 2.13 acres of land with a density of 28.64 units per acre, Greenbriar encompasses a desirable unit mix comprised of 57 two-bedroom units measuring 860 square feet each, one three-bedroom unit containing 1,250 square feet, and three four-bedroom units spanning 1,720 square feet each, with an average unit size of 909 square feet. Choosing to live at Greenbriar gives residents phenomenal access to great restaurants, coffee shops, music, and theater venues.

Investment Advisors

Corey Krug

Director

248.341.3338

Corey.Krug@berkadia.com

 

Financing

DETROIT OFFICE

28411 Northwestern Highway

Suite 300 Southfield, Michigan 48034 Phone: 248.208.3460 Berkadia.com

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