McKinley purchases apartment complex on Ann Arbor's north side, plans for improvements
McKinley Inc. acquired the Traver Knoll apartment complex on the north side of Ann Arbor.
Photo from fhmanagement.com
In a deal that closed on Monday afternoon, Ann Arbor-based McKinley acquired the 216-unit Traver Knoll apartment complex, located on Barton Drive off Plymouth Road.
“The north side communities of Ann Arbor are the best performing communities in our entire Midwest U.S. portfolio and this acquisition will help further solidify our position in the marketplace,” said McKinley CEO Albert Berriz in a statement.
With the acquisition, McKinley now owns more than 5,300 units in the region. The company was founded in Ann Arbor in 1968, and it now owns and manages multifamily and commercial real estate properties in 25 states.
In an interview with AnnArbor.com, Berriz called the multifamily housing market in Ann Arbor “quite compelling.”
“We can be using those dollars to invest anywhere that we operate, but Ann Arbor really commands some of the strongest rents in the Midwest. There’s no question…that’s why we’re electing to expand in our own town,” he said.
Berriz declined to name the purchase price of the Traver Knoll complex, but he said McKinley plans to invest in improvements on the interior of the building, amenities and landscaping.
“I think it’s currently inconsistent with the quality of our other complexes,” he said.
The property, which is registered to West Bloomfield-based First Holding Management Company, was assessed at $6.08 million this taxable year, making its estimated market value about double that. The property sold in 2005 for about $13.07 million.
In May, McKinley purchased the Ironwood Place Apartments on Leslie Circle, just northeast of Traver Knoll, and integrated it with the neighboring Traver Ridge Apartments.
Berriz said the apartment market on the north side of Ann Arbor is strong for several reasons: University of Michigan’s North Campus, the North Campus Research Complex, and the job growth at companies like Domino’s Pizza and Con-way.
“If you look at what’s happening in terms of the impact of the university, it is really felt around the north side,” he said.
“There has been a significant amount of job growth…companies have hired a significant amount of workers in the tech support area,” he continued.
Berriz said the occupancy level at Traver Knoll is in the high 90 percent range. Rental rates range from about $500 per bed to $865, according to marketing materials.
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
zanzerbar
Tue, Nov 27, 2012 : 7:46 p.m.
McKinley always makes improvements to the properties they manage but expect the rental rates to increase.
Jay Thomas
Tue, Nov 27, 2012 : 6:45 p.m.
McKinley is a behemoth. While I am pro business I have to wonder at what point they are rubbing up against the anti-trust laws.
zip the cat
Tue, Nov 27, 2012 : 6:27 p.m.
Mr Berriz, A top notch guy ,boss,ect. I worked for him quite a few yrs ago. Regretted leaving McKinley properties many times. The only guy I know who could brake a 3/8" thick glass confrence table top with one swift stroke.
aquileyendo
Tue, Nov 27, 2012 : 2:58 p.m.
As barb sid the same company that owned traver knoll also owned charlton apartments, AND they also own Shorline aparments (off pontiac trail and longshore drive). I knew some who was a maintenance worker for the 3 properties and they used the garage by the pool at traver knoll to store tools and stuff because the other properties didn't have as much storage I believe.
Ann English
Tue, Nov 27, 2012 : 11:59 p.m.
I think it's Shoreview Apartments, not Shoreline; I googled Shoreline Apartments, Ann Arbor, MI and Shoreview Apartments came up, and it's right where Longshore Drive must bend, or it'll take drivers right into the Huron River. The photos online look more like those closer to the Huron than the ones at Wright Street and Longshore.
Barb
Tue, Nov 27, 2012 : 2:43 p.m.
The management of Traver Knoll also managed a much smaller complex in the West side, Charlton. Any info on whether that was affected?
Veracity
Tue, Nov 27, 2012 : 2:07 p.m.
The City should offer its distressed 370 affordable care units to McKinley since it can not afford the $14 million of accumulated repairs and upgrades required to provide safe and desirable living conditions. The problems with the affordable care units were highlighted in a Schumaker and Company 2010 report contracted by the Ann Arbor Housing Commission, an offshoot of City Council. According to that report over $1 million in urgent repairs were identified without significant improvements to date.
LXIX
Tue, Nov 27, 2012 : 12:23 p.m.
News flash - Representing nearly 1/10th of the permanent resient population in Ann Arbor, McKinley is now well-poised to act as the gobetween collector for the City's anticipated "DDA Resident Parking Tax" imposed on all unit addresses. Unauthorized vehicles will be towed away after 48 hours. And remember, if you are on good terms with the Creator, all of your pets and belongings will be in good hands with Mckinley.