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Two large Wyoming apartment complexes hit the market COURTESY PHOTO

Two large Wyoming apartment complexes hit the market

BY Friday, May 11, 2018 12:31pm

WYOMING — Two apartment complexes in suburban Grand Rapids are back on the market after being purchased in 2015 for almost $100 million.

HFF LP, a Dallas-based commercial brokerage, is marketing the Ramblewood and Woodlake apartment complex properties on behalf of two Atlanta-based affiliated entities, Ramblewood North Owner LLC and Ramblewood South Owner LLC.

While it’s unclear who’s behind the ownership group, the affiliated entities acquired the Ramblewood and Woodlake complexes in June 2015 for $64 million and $34.8 million, respectively, according to Kent County property records. The two properties total more than 1,700 apartment units.

“There’s significant value add on this property,” said Kevin Girard, a director in the Chicago office of HFF who’s focused on multifamily investments. “It’s a great opportunity for a value-add investor to come in and really make some changes and update the property how they see fit. Value add is a popular product at the moment.”

Since acquiring the properties three years ago, the ownership group says it invested in upgrades to a small handful of the units, resulting in rent premiums of between $175 and $195 and a 25-percent return on investment, according to a statement from HFF.

Girard noted the owners are marketing the complexes without a price. It remains unclear what kind of price the properties could fetch in the current market.

Occupancy levels for the two complexes hover around 95 percent, according to an offering memorandum obtained by MiBiz.

Those occupancy levels align with the findings of a recent apartment market report produced by the Grand Rapids office of commercial brokerage Colliers International Inc. According to the report, the metro area’s overall apartment occupancy stands at 94.5 percent.

“It’s clear that Grand Rapids has become one of the most desirable places to live in the country because of our strong economy, vibrant downtown, proximity to lakes, parks and other amenities that enhance quality of life,” Jeff Hainer, a senior research analyst at Colliers International, said in a statement. “This year we anticipate continued population growth, which will drive increased occupancy rates. Developers will continue to build multifamily units to keep up with demand.”

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