X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

SOUTHFIELD, MI-The Lexington of Southfield Apartments is on the sales block for $59 million, or approximately $51,982 a unit, according to Sperry Van Ness. The commercial real estate investment brokerage was recently tapped to market the 1,135-unit apartment community at 27350 Franklin Road to potential buyers.

Robert Pliska of Sperry Van Ness tells GlobeSt.com that he expects the property, which has a cap rate of 8%, to attract investors from the East and West coasts, who are accustomed to half that rate of return for multifamily properties in their own backyards. He adds that the property also carries a higher rate of return than some properties that have traded in the Detroit market recently. Those sales include a major acquisition with a cap rate of 7.34% as well as other sales with cap rates around 6.5%, Pliska says.

In recent years, the Detroit market like the rest of the country has experienced a lot of apartment to condo conversion and little new apartment construction. As interest rates continue to rise, Pliska says, the demand for apartments in communities such as the Lexington of Southfield should also increase. The property is currently 88% occupied.

A two-year, $8.5-million renovation was recently completed on the six-building property, which was built in 1972. The community has 716 one-bedroom/one-bathroom units, 378 two-bedroom/one-bathroom units and 41 three-bedroom/two-bathroom units ranging in size from 650 to 1,150 sf. Monthly rents range from $535 to $932.

Property amenities include a pool and spa, business center, clubhouse, courtyard, fitness center, playgrounds, and basketball, volleyball and tennis courts. The 32.45-acre community also features 2,640 surface parking spaces as well as easy access to Interstates 696, 96 and 275. “It’s about a half hour from everywhere in the metro area,” adds Pliska, who is marketing Lexington of Southfield along with Jonathan Jayson, also of Sperry Van Ness.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.