Investors flip Ann Arbor apartment complex for rumored $8.5 million profit
Investors sold the apartment units at Ann Arbor's Woodland Mews development for a rumored profit of $8.5 million just eight months after they bought it, according to a report by Crain's Detroit Business.
A group of Oakland County investors — Bleznak Real Estate Investment Group and Hartman & Tyner Inc. — sold 233 rental units at the complex for a price reported to be in the range of $20 million. That would be about $8.5 million higher than the investors paid in December, according to Crain's.
The buyer, New York-based equity fund Vesper Holdings, also bought the nearby Harbor House apartment complex in 2010 and is considering other possible investments in the Ann Arbor area.
The deal is the latest in a roller coaster ride for the Woodland Mews property, a 306-unit community with 73 privately owned condominiums.
The complex was initially designed so that all of the units would eventually be turned into condos — but the housing market soured, and the rental units slipped into foreclosure in 2007. It's unlikely the buyer will try to turn them into owner-occupied units.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
Charles Lee
Tue, Oct 11, 2011 : 3:59 p.m.
I love success stories. <a href="http://cashflowhomes.weebly.com/" rel='nofollow'>http://cashflowhomes.weebly.com/</a>
Trepang674
Thu, Aug 11, 2011 : 1:20 p.m.
8.5M...and if they get taxed the same as I....they owe 1.9M. Good for us to help pay for the mess the banks and realestate speculators gave us in 2009.
Sandria Kellermann
Tue, Aug 9, 2011 : 4:59 p.m.
Lived at Woodland Mews , when Bleznak took over they claimed to be there for the long haul and would finally FINALLY make changes to improve the shoddy conditions of many of the apartments. Not only did they avoid doing this, they discriminated against us a disabled military family and told us "Ypsilanti is where disabled people to live" and made no repairs or changes. The losers are always the tenants who now have ended up with 3 owners in 2 years and still report to me that nothing has changed except new blue umbrellas at their pool..probably to help sell the place. Beware renters. Do your research ! We are so relieved to be out of there bu miss our friends...because there are so many good people who live there. We know renters including a disabled veteran afraid to speak up because they don't want ot face a non-renewal of their lease or worse. They just live with the crummy conditions there. It's a shame and another lie told to Ann Arbor residents who hoped they would finally get an owner of the property to fix up the insides not just make the outside look "spiffy" for resale. They play low and dirty. When we filed with HUD for their actions and lack of accomadations, they refused to refund our deposit making false claims and then hacked our web site for our troops,vets and families. Karma...it all comes back to you in the end. We're better off without them in this area. Ann Arbor deserves better and especially our renters in this economy. Go Blue !
sig.melvin
Thu, Aug 11, 2011 : 4:03 p.m.
yea HUD and MHDA do make a good pair..
Tesla
Sat, Aug 6, 2011 : 5:21 p.m.
Damn. It's like they do that for a living.
russellr
Sat, Aug 6, 2011 : 2:36 p.m.
Good for them, I'm glad they made a profit. Also I feel it's nobodies business what they paid or what they received. Everybody always want's to run someone elses business. If you don't like it buy these places yourself and do what you want with it. I bet you wouldn't want to give the profits to the homeless if it was your investment
zip the cat
Sat, Aug 6, 2011 : 11:56 a.m.
I'll bet the IRS is just licking there chops with all the capitol gains taxes they are going to get from this windfall
Craig Lounsbury
Sat, Aug 6, 2011 : 10:37 a.m.
While Sitt (the buyer) would not disclose the sale price, rumors around folks in Ann Arbor put the sale price at $20 million.... While Bleznak (the seller) wouldn't get into the sale price either, he said he and Tyner now have "more funds to be reinvested." So neither the buyer nor the seller will discuss the price? The source for this maybe/ mighta/ coulda story is "rumors around folks in Ann Arbor"? After reading this story and clicking on the Crains link I feel cheated. I think I'll take a shower.
genetracy
Fri, Aug 5, 2011 : 9:15 p.m.
The 8.5 million windfall should be given to the homeless.
Ross
Sat, Aug 6, 2011 : 2:37 a.m.
Well, yeah, German, it probably _should_. But it doesn't, because we've all bought into this thing called capitalism, whereby rich people are given loopholes to take over markets and funnel cash back to themselves while the poor are left to suffer. The notion that corporations should always be encouraged and applauded for reaping windfall profits at any expense is sickening. But nonetheless, kudos to Bleznak and Hartman/Tyner for the awareness to scoop this place up. For the record, they didn't (as I am told) buy this property just to flip it as an investment; they were going to make serious income just operating it as a rental property (of which they own several others). My biggest question is how no one else outbid them on the original foreclosure sale from the bank that assumed the property after the initial scumbag developer claimed bankruptcy on their well-set up LLC and walked away with everyone's cash.
TheGerman
Fri, Aug 5, 2011 : 11:27 p.m.
Why should the reward of a good investment by a private company be given to the homeless? When Domino's makes a big profit, should that go to the homeless too?
1bigbud
Fri, Aug 5, 2011 : 9:04 p.m.
If the lost 8.5 mill Would you still post this story? They are called investers (good for them) This is not Hartman & Tyner Inc. first outing