GRAND RAPIDS — A California investment group has acquired two, 168-unit affordable housing complexes in the Grand Rapids area and at least two other properties across the state, MiBiz has learned.
Affiliates of Beverly Hills, Calif.-based Stonebridge Global Partners LLC acquired Pine Ridge Apartments located near the East Beltline Avenue and 5 Mile Road NE and The Fountains apartment complex near the intersection of Burton Street and East Paris Avenue.
The transactions closed in late July and sold for $15.35 million and $14.75 million, respectively, according to public records. The deal also included apartment complexes in Midland and Menominee, the sale prices for which were not immediately available.
Stonebridge is a real estate investment firm that specializes in owning and managing Section 8 multifamily complexes largely in the Midwest and southern portions of the country. The company also has an office in Singapore, according to its website.
Executives at Stonebridge Global Partners were unavailable for comment as this report was published.
The seller of The Fountains was Fountains Ltd. Partnership while Pine Ridge was sold by WMF/Huntoon and DP Services Corp., according to public records.
The four-property portfolio included a mix of market-rate and affordable housing units and all had received significant upgrades in recent years, offering an upside to an outside investor, according to commercial real estate sources.
Affordable Housing Advisors, a division of commercial brokerage firm Marcus & Millichap Co. in Southfield, served as the broker for the transaction, according to a source familiar with the deal. Executives at the firm did not respond to multiple requests for comment.
The transactions mark a trend of large investment groups buying up apartment complexes in the region.
As MiBiz first reported on July 21, the 237-unit, high-end Ridges of Cascade apartment development near I-96 and 28th Street SE sold for $57 million to a Lansing investor.
In May, an Armonk, N.Y.-based company sold the Campus Court at Knollwood apartments for $53 million to Knollwood Loft LLC of Los Angeles, according to property records. The apartments are located at 1701 Knollwood Ave. near the Western Michigan University campus.
“Michigan and the Midwest continues to be an attractive location for investors from across the country,” said Scott Nurski, a multifamily investment adviser with Grand Rapids-based commercial brokerage NAI Wisinski of West Michigan.
Apartment occupancy in the Grand Rapids area stands at about 96 percent, according to the most recent market report from NAI Wisinski.
Going forward, Nurski — who was not involved in any of the Stonebridge Global transactions — said he continues to expect to see outside interest in the market, but the lack of quality inventory could make transactions difficult.
“There will continue to be strong interest and folks seeking that product,” Nurski said. “There’s no diminishing interest. As long as there’s product available, it will move.”