Berkadia has arranged the sale of Towne Square Apartments and Townhomes, a 532-unit community a few minutes away from Michigan State University in Lansing, Mich. Midwestern investor Hunter Management acquired the asset from DTN Management Co., which used a 1031 exchange to swap the property for a newly constructed luxury community in Sarasota, Fla.
Towne Square is the first of a two-property portfolio that will change hands; the second, adjacent property, College Towne, is slated to close later this year, a Berkadia representative told Multi-Housing News. Located at 3029 Beau Jardin Drive, the property—formerly known as College Towne West—was built in phases from 1969 to 1976 and acquired by DTN in 1994.
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The community geared towards college students features one-, two- and three-bedroom units, with rents ranging from $337 to $960. Amenities include swimming pools, a sauna, sand volleyball courts, a 24-hour fitness center and conference rooms. The property sits to the west of the MSU campus and near Interstates 96 and 496. Built in 2001, the neighboring College Towne at 4915 Belle Chase Blvd. has 138 units and will trade as part of the 670-unit portfolio.
DTN Management executed a reverse 1031 exchange with Towne Square, a tax-deferred exchange transaction in which the investor buys the replacement property before selling the relinquished property. The company acquired 50 Paramount, a 286-unit community in Sarasota, Fla., from McKafka Development Group last November, according to Yardi Matrix data. The sale was subject to a $50 million loan held by KeyBank.
Berkadia completed the sale of Towne Square on behalf of DTN Management. Kevin Dillon, Jason Krug, Rick Vidrio, Rick Brace, Charley Henneghan, Carly Dietz, and Corey Krug of the brokerage’s Great Lakes team along with Kevin Larimer of Berkadia’s Student Housing Group arranged the sale.