A 544-unit apartment complex in Troy has sold to Southfield-based Kaftan Communities for $25 million.
The company will rebrand the Eagles Landing of Troy apartments as the Gables of Troy starting Thursday, said President Jeffrey Kaftan.
The complex, located south of Interstate 75 between Livernois and Rochester roads, will also undergo $1.5 million in renovations to the clubhouse, exterior and interior work, and improvements to roads, hallways and signage, Kaftan said.
Kaftan Communities will manage the complex, he said.
The purchase brings Kaftan’s multifamily ownership and management portfolio to about 2,500 units in southeast Michigan. It’s the company’s largest purchase in its nearly 50-year history, Kaftan said.
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“We feel there is a lot of opportunity with this product given its location,” he said. “Between the rebranding and renovating the property, we’ll step it up to another level.”
The complex is about 94 percent occupied, Kaftan said.
It has one- and two-bedroom units with an average size of 875 square feet and 1,050 square feet, respectively, according to Washington, D.C.-based real estate information service CoStar Group Inc.
One-bedroom rents range from $635 to $675 and two-bedroom rents range from $650 to $700, according to CoStar.
Birmingham-based Q10 | Lutz Financial Services Inc. arranged a $21 million loan for the purchase, Kaftan said.
BDB Properties was the seller.
The complex had last sold in 2003 for $31.75 million, or $58,364 per unit, according to CoStar.
This marks the second large multifamily residential deal in southeast Michigan this month.
In mid-April, a joint venture between Troy-based Hayman Co. and Birmingham-based Belfor Holdings Inc. completed the largest, by dollar value, multifamily property purchase so far in Michigan this year.
The deal for two apartment complexes — The Pines of Cloverlane and Hamptons of Cloverlane — in Washtenaw County’s Pittsfield Township was for $84 million.
Kirk Pinho: (313) 446-0412
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