McKinley Inc. buys apartment complex on Ann Arbor's north side
Ann Arbor-based real estate firm McKinley Inc. recently added another apartment complex to its extensive portfolio: Ironwood Place Apartments on Leslie Circle in Ann Arbor.
McKinley purchased the 100-unit complex -- which is located off Huron Parkway on the city’s north side -- and now plans to integrate it with the neighboring 210-unit Traver Ridge Apartments.
Among the plans: Operate both complexes under the Traver Ridge name, integrate the communities via walking trails and serve the residents of both complexes out of the Ironwood community center.
Both complexes have one-, two- and three- bedroom units. Rent ranges from $899 per month for a one-bedroom to $1,470 per month for a three-bedroom.McKinley CEO Albert Berriz said the occupancy levels at Ironwood are already “very strong” at upwards of 90 percent. He said because the complex is less than 10 years old, McKinley won’t have to invest in renovations.
“It’s in fabulous shape,” he said. “It’s a terrific building with large apartments. It’s a terrific opportunity to us.”
He declined to name the purchased price of the complex, but called it a “fair price” for both the seller -- an entity registered as Ironwood Associates Ltd., based in Southfield - and McKinley.
“It’s competitive compared to how other things have sold in that market,” he said.
According to city documents, the building’s assessed value was $3.372 million for the 2012 tax year, making its estimated market value about double that.
With the recent acquisition, McKinley now owns 5,231 units in the Washtenaw County apartment market. The company was founded in Ann Arbor in 1968.
Of McKinley’s entire portfolio, Berriz said the apartment complexes like Traver Ridge and Ironwood get the strongest rents due to the location.
“[University of Michigan's] North Campus is formidable in terms of what’s happening there and its growth,” he said. “There is huge job growth there and it’s our strongest rents in all of Ann Arbor.”
In light of several other Washtenaw County apartment sales in recent months, Berriz said the movement speaks to the strength of the county’s multifamily market.
“The apartment environment has improved…there is no question that apartments are stronger today than they were several years ago.”
Among other recent sales:
In January, two of Ann Arbor’s largest commercial properties -- Windemere Apartmentsand Lake Village of Ann Arbor -- were sold for $85.7 million. The deal set records in the Ann Arbor market for the price paid per unit.
A month later, investors bought the Ridgewood Apartments in Pittsfield Township for $7 million after the listing broker received interest from many potential buyers.
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Lizzy Alfs is a business reporter for AnnArbor.com. Reach her at 734-623-2584 or email her at lizzyalfs@annarbor.com. Follow her on Twitter at http://twitter.com/lizzyalfs.
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