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Ridges of Cascade sells for $57 million COURTESY RENDERING

Ridges of Cascade sells for $57 million

BY Friday, July 21, 2017 12:28pm

CASCADE TOWNSHIP — A 237-unit high-end apartment complex in suburban Grand Rapids has sold for $57 million, MiBiz has learned.

Municipal property records show the Ridges of Cascade, a newly built apartment complex in Cascade Charter Township, sold to Lansing-based Country Club Manor LLC in a deal that closed on June 30.

The apartment complex sold at more than $240,000 per unit.

Roger Thornburg, a Lansing real estate agent and principal with Investors Equity Group Inc., is listed as the registered agent for the entity.

Thornburg did not respond to a request for comment.

Grand Rapids-based The LaCati Group LLC developed the roughly $30 million Ridges of Cascade project on the site of the former Centennial Country Club. The development opened in 2014.

Brokers Scott Nurksi and Craig Black with NAI Wisinski of West Michigan were involved in the transaction, but declined further comment.

Commercial real estate sources not involved in the transaction note that the deal presented a unique opportunity for the buyers.

“The West Michigan apartment market — especially in Grand Rapids — there’s lots of long-term holders who just don’t sell,” said Matt Jones, founder and principal at Beacon Realty Group LLC, a Grand Rapids-based commercial brokerage focused on the multifamily segment. “The inventory is low, historically. So when an asset comes up, particularly a good size and location, then it demands a premium.”

An exact occupancy for The Ridges of Cascade was not immediately clear, but NAI Wisinski’s most recent market report noted that occupancy for multifamily projects in the Grand Rapids area stands at nearly 96 percent.

Rents at the apartment complex range from $1,175 to $2,300, according to the property’s website.

Jones with Beacon Realty Group said that the deal represents a rare opportunity, especially in West Michigan, given the high end nature of the development coupled with demand from more institutional investors seeking to gain a foothold in the market.

“There just hasn’t been an immediate, Class A, sizable asset (for sale), which opens up the door to a lot of national investors, especially since Grand Rapids has been kind of put on the map for everyone,” Jones said.

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