Detroit Multifamily Sparking National Interest
What had been a moribund downtown now throbs with life each workday, and that activity has also spurred a multifamily development boom.
DETROIT—The CBD of this city, along with the surrounding neighborhoods, is now on the radar screen of investors looking for healthy multifamily properties. More than 195 groups registered to review Carlton Apartments, a 144-unit garden-style multifamily property in Lafayette Park, an area just north of the now-vibrant downtown. when it went on the market, Cary Belovicz, executive managing director of Greystone Bel, tells GlobeSt.com. And 25 offers were made by local, national, and international investors before FL-based Andover Real Estate Partners and MI-based The M-Group purchased the property.
An investment sales team from Greystone, led by Belovicz, represented the seller, with acquisition financing also provided by Greystone. And what generated this level was interest is easy to see, he says.
“All you need to do is visit Detroit and see for yourself the $8 billon of investment between Gilbert and Illitch.” What had been a moribund downtown now throbs with life each workday, as thousands of employees from Dan Gilbert’s companies go to and from renovated office buildings once plagued by high rates of vacancy. And the Illitch family, which owns both the Detroit Tigers and the Red Wings, kept the teams downtown in new stadiums, and has made many other investments.
The activity has also spurred a multifamily development boom, with thousands of new units getting created out of empty office or industrial space. The vacancy rate around the downtown typically hovers in the low single digits. And that boom is far from over.
“Midtown, Brush Park, Corktown and New Center have all seen significant developments resulting in investors turning to Lafayette Park as the next direction for development,” Belovicz says. “Lafayette Park has multiple new residential developments in the works including, Pullman Parc, Above the Cut, Lafayette West and a small-format Meijer mixed-use project located across the street from Carlton Apartments.”
Belovicz and John Marr, managing director of Greystone, secured a 10-year, 4.96% fixed-rate Fannie Mae Green Rewards conventional loan for the buyer. The sale and financing closed on September 21.
Built in 1971 and located at 1387 E. Larned St., Carlton Apartments offers studio, one-and two-bedroom floor plans. Carlton’s residents have unobstructed views of the Detroit skyline – from the GM Renaissance Center to Greektown Casino – and are within walking distance to upscale restaurants, high-end retail, and the city’s new Qline.