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Sunday, 17 November 2013 22:06

Lansing investor group buys eight-property portfolio in Grand Rapids

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Iowa Flats located at 125 Jefferson Avenue SE in Grand Rapids is one of eight multi-unit apartment properties purchased by Heritage Collection LLC, an investment group set up by East Lansing-based Maple Grove Property Management.  Iowa Flats located at 125 Jefferson Avenue SE in Grand Rapids is one of eight multi-unit apartment properties purchased by Heritage Collection LLC, an investment group set up by East Lansing-based Maple Grove Property Management.  COURTESY PHOTO

Eight apartment properties in and around downtown Grand Rapids have new owners.

Heritage Collection LLC of East Lansing recently purchased a 131-unit apartment portfolio from Grand Rapids-based property management firm Heritage Management LLC, owned by Chad Cassiday of Heritage Investment Group.

The buyer is an investment group set up by East Lansing-based Maple Grove Property Management, which partnered with MP1 LLC in April to buy the 38 Commerce property in downtown Grand Rapids.

“When this deal came along, we jumped at the opportunity,” said David Emdin, area manager for Maple Grove. “Since we closed on 38 Commerce, it has been very successful for us and we’ve been looking for other opportunities to get involved in apartment properties in Grand Rapids.”

The company believes there is a clear demand for apartment living in downtown Grand Rapids, said Emdin, noting that 38 Commerce has a 65-person waiting list and only 43 units.

“This purchase helps us nicely diversify our portfolio,” he said. “These properties are nice units in mid-range prices. There isn’t much product in the market in that segment, and a lot of what is coming on the market is high-end.”

All of the apartment units included in the acquisition are fully occupied, Emdin said.

The properties in the deal include Park Place Apartments at 68 Ransom Avenue NE, Iowa Flats at 125 Jefferson Avenue SE and Fountain Hill Flats at 301 Fountain Street NE. Also included in the sale are properties at 143 and 166 Lafayette Avenue NE, 11 and 40 Prospect Avenue NE and 432 Fountain Street NE.

To help finance the deal, Heritage Collection raised $2.26 million in investor equity, but not all the funds were used to purchase the portfolio, Emdin said.

Asked if a portion of the funds would go toward renovations or upgrades to any of the properties, Emdin said no major improvements are planned at this time. Still, that’s not to say the company would not plan renovations in the future, he said.

Maple Grove is also keen on future deals, given the strength and momentum of the Grand Rapids apartment market, Emdin said.

“I think we are definitely in a buying mode and our eyes and ears are open in West Michigan, especially in downtown Grand Rapids,” he said. “As a company based in East Lansing, we have a fair amount of business there and are actively looking there as well, but for the last year, we’ve been focusing heavily on Grand Rapids market and will continue to do so.

“We’re very excited about the downtown Grand Rapids market as far as apartment properties are concerned.”

Read 3496 times Last modified on Sunday, 17 November 2013 22:15

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