Jonathan Rose Cos. has acquired two affordable senior housing communities totaling 393 units—Lakeland Place Apartments and Bowin Place Apartments—in Detroit, for a combined $16.2 million. Capital One provided FHA 223(f) financing for both communities. Rose Community Management will manage the assets and Rose Community Builders will be in charge of the upcoming renovation process at both properties.
Lakeland Place Apartments in Waterford, Mich., traded for $8.2 million and was acquired in a joint venture with Community Opportunity Fund. Capital One originated a $16.4 million loan for the acquisition, according to Yardi Matrix data. The property was completed in 1978 and encompasses 200 units with one- and two- bedroom floorplans ranging between 550 and 760 square feet.
Bowin Place Apartments was acquired in a joint venture with Community Opportunity Fund and Huntington National Bank for $8 million. In July, the property became subject to an $11.1 million loan originated by the Michigan State Housing Development Authority. Completed in 1978 as well, Bowin Place includes 193 units with one- and two-bedroom floorplans, ranging from 575 to 1,050 square feet, the same data provider shows.
Located at 2700 Elizabeth Lake Road and 15400 W. 7 Mile Road, the properties are within a 25-minute drive of each other. Both communities have many dining options, retail spaces and entertainment venues in the proximity, as well as several green areas.
Focus on upgrades
The fully affordable and age-restricted properties are set to be renovated, with the new owner planning to invest $6.8 million in improvements at Lakeland Place and $8.3 million at Bowin Place. The first community will have a façade restoration and new siding, with interior upgrades such as new windows and sliding doors, kitchen and bathroom improvements, new pumps and high efficiency boilers also in the plan.
At Bowin Place, Jonathan Rose intends to add some new common-area amenities, such as a community room, computer room and library. The company will also be renovating the roof, doors and windows, and also add new boilers, pumps and a generator.
Renovations are anticipated to be completed in 10 to 12 months. The two Section 8 properties are set to achieve Enterprise Green Communities certification.
Jonathan Rose Cos. is also investing in affordable housing in other metro areas of the country. In Washington, D.C., the company is working on a more than 125-unit community in Columbia Heights, after recently receiving $25 million in financing from EagleBank.