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.
McKinley Inc. is the new owner of Ironwood Place Apartments in Ann Arbor.
Photo from mynewplace.com
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 Apartments and 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.
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.
Comments
Ann English
Thu, Apr 5, 2012 : 10:59 p.m.
Now I remember: those apartments are across Huron Parkway from the Traverwood Library.
annarbortownie
Sat, Mar 31, 2012 : 10:16 a.m.
It's a press release not an article.
Jay Thomas
Sat, Mar 31, 2012 : 6:25 a.m.
Is McKinley going to buy everything around here? I'm starting to understand the anti-monopoly laws a little better...
SonnyDog09
Sun, Apr 1, 2012 : 6:11 a.m.
McKinley cannot "buy everything around here." That is the UofM's job.
DLRomero2
Sat, Mar 31, 2012 : 2:04 a.m.
So that's what McKinley did with the money from the Park Place flood relief fund!
GSK
Sat, Mar 31, 2012 : 1:06 a.m.
Since I moved into Ironwood Place in 1990 and lived there for a couple years, I would say the comment "the complex is less than 10 years old" is slightly out of whack. I recall that they would have been completed around '89 or '90. The CEO is obviously clueless, and there was no fact-checking done for the article.
say it plain
Fri, Mar 30, 2012 : 10:13 p.m.
I love the euphemism for "high rents"..."strong", that's so cute.
zanzerbar
Fri, Mar 30, 2012 : 9:20 p.m.
It would be a short list of what McKinley does not own or manage in this area.They do keep their properties well maintained.
TheGerman
Sat, Mar 31, 2012 : 8:05 p.m.
They are well maintained on the surface only. Nothing is ever fixed properly, always just a quick fix. We live in a community riddled with potholes and have been told for 3 years that next year they would redo the parking lot.
obviouscomment
Fri, Mar 30, 2012 : 9:38 p.m.
I guess that depends on your definition of well maintained. Yes they keep their properties clean and don't hesitate to fine and get rid of unruly tenants. But as far as maintenance on their buildings, not so much. We live in one of their complexes that they've owned for a while and we have constant plumbing problems, the windows and insulation are terrible so we pay ridiculous heating bills, and when you go to management about any of those issues you are constantly given the runaround about who is actually responsible for the problem. But they never hesitate to brag about the landscaping and new pool.