Investor Sells Metro Detroit Apartment Property
Friedman Real Estate advised on the transaction.
The 129-unit Huntington House apartment community in Riverview, Mich., has traded for $10.5 million. A private New Jersey-based investor, Matisyohu Herzka, sold the asset to an undisclosed buyer.
In 2021, Herzka bought the property from Uniland Corp. The community was subject to a CMBS loan in the amount of $7.57 million, with Midland Loan Services as master servicer and a maturity date of 2031. On May 14 of this year, the loan was put on the servicer’s watch list. KeyCorp Real Estate Capital Markets is a special servicer.
Friedman Real Estate’s Peter Jankowski and Rich Deptula represented the seller in the deal. Farmington Hills, Mich.-based Friedman is a national real estate services company with offices in Chicago, Houston, Nashville and Columbus, Ohio.
Common amenities at Huntington House, which is on 4.8 acres at 17400 Fort St., include two swimming pools and laundry facilities. Covered parking is available for an extra fee. The property was originally developed in 1964. Riverview is a southern suburb of Detroit.
Huntington House is 94.5 percent occupied, according to Yardi Matrix. The property, which offers mostly one- and two-bedroom units, as well as limited three-bedroom apartments, has seen rent increases in recent years. In 2020, average rent at the community was $840 per month. By 2024, the average rent had grown to $1088 per month.
Detroit-area apartment development slows
In the first half of 2024, metro Detroit apartment occupancy came in at 92.9 percent, edging up from the same period a year earlier, when it was 92.5 percent, according to data from Friedman. The rise was due to absorption exceeding deliveries as the result of a slowing development pipeline.
Units under construction in the market totaled about 4,500 in the first half of this year, compared with an all-time high of 8,300 units a year earlier, a drop that Friedman attributes to elevated interest rates and other increased development costs.
Investors are still interested in metro Detroit multifamily assets, however, though not as much as in the second half of 2021, when they ponied up a record $1.69 billion to buy such assets, Friedman notes. Total sales volume in H1 2024 came in at $228 million, up year-over-year from $128 million.
