Twin Multifamily Towers in Southfield Sold for $18.2 Million
- Oct 23, 2015
Southfield, Mich.—A New York City-based real estate investment company recently announced it closed on the sale of a two-building multifamily community in Southfield, Mich.
Bluerock Residential Growth REIT (BRG) sold the North Park Towers at 16500 North Park Drive for $18.2 million to an undisclosed buyer. The deal generated an Internal Rate of Return of approximately 40 percent on BRG’s equity investment in the project.
Real estate data provider Yardi Matrix shows that BRG purchased the 468,670-square-foot property from Angelo Gordon & Co. back in December 2005 through an $11.50 million loan from Wells Fargo Bank. The loan has a final maturity date of January 10, 2024.
“With the sale of North Park Towers, BRG is fulfilling our commitment to prudent recycling of capital. We are exiting an older asset in a non-strategic market with very low average rents relative to our portfolio and doing so at a very healthy return. This will enable us to redeploy our capital into a Class A asset in our targeted high growth markets,” said Ramin Kamfar, chairman & CEO of BRG.
Built by Sullivan & Smith Inc. on 8.8 acres of land with great exposure to Northwestern Highway, the North Park Towers are identical in design and bear the same address. Both properties were completed in 1967 and renovated in 1999. The two 19-story apartment buildings include 313 apartments ranging from one- to three-bedroom units, three commercial condominium units and 10 retail/commercial rental spaces. Monthly rents at North Park Towers start at $829 for a 1,000-square-foot one-bedroom unit, reaching $2,561 for a three-bedroom. The list of amenities includes a fitness center, business center, courtyard, swimming pool with sundeck, restaurant and convenience store with pharmacy.
Image via BRG