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FOR SALE
BEVERLY PLACE APARTMENTS105-UNIT MULTIFAMILY PORTFOLIO
JDS REAL ESTATE SERVICES, INC.
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.
This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.
01EXECUTIVE SUMMARY
02PROPERTY DESCRIPTION
03FINANCIALS
04COMPARABLES
05MARKET OVERVIEW
06DEVELOPMENT BOOM
KIDDER.COM
EXCLUSIVELY LISTED BY
TABLE OF CONTENTS
JDS REAL ESTATE SERVICES, INC.
JENNIFER D. STEIN, CO-BROKER
[email protected] N° 6505385865
JDS REAL ESTATE SERVICES, INC.
CHRIS ARMES, PRIMARY BROKER
[email protected] N° 01379750
KIDDER MATHEWS
LANSING, MIEXECUTIVE SUMMARY & PROPERTY DESCRIPTIONFINANCIALS & COMPARABLES
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SUBJECT PROPERTY
KIDDER.COM
105
TOTAL UNITS
Lansing, MI
SUBMARKET
Situated adjacent to Lansing’s central business district, Beverly Place contains 105 one-, two- and three-bedroom units across three stories. The 83 one-bedroom, one-bathroom units, 21 two-bedroom, one bathroom units and 1 three-bedroom, one-bathroom unit.
BEVERLY PLACE
Originally built in 1961/1972, Beverly Place began renovations in 2016 where 83% of the units have been fully renovated, including the installation of new water saving
toilets, aerators, and faucets. The building’s units feature high-speed internet access, ceiling fans, and cable ready hookups; many units also enjoy balconies and patios.
Residents of Beverly Place enjoy the use of community laundry facilities and a surface parking lot. The property benefits from its location directly across from Lansing’s 13-acre Hunter Park and its recently-renovated pool and splash pad. Michigan State University, Frandor Shopping Center and the rest of downtown Lansing are also nearby, providing Beverly Place’s residents with ample area amenities.
EXECUTIVE SUMMARY
INVESTMENT SUMMARY
Price $4,200,000
Average Price/Unit $40,000
Price/SF $77.85
Cap Rate (2020 Revenue) 7%
GRM 5
Number of Units 105
Total Portfolio SF 53,944
$83.42
PRICE/SF
$42,000
PRICE/UNIT
LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS 4
5LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS
PROPERTY SUMMARY
Address 1401 E Kalamazoo
Year Built 1961
Number Of Buildings 5
Number Of Stories 3
Gross Building Size 53,944 SF
Parking Surface Lot 1 Space per unit
Number Of Units 105
Unit Mix1 Bed x 1 Bath (83)2 Bed x 1 Bath (21)3 Bed x 1 Bath (1)
Assessor’s Parcel # 01-01-15-407-081
Rental Restrictions 3 Pet Limit | Breed Restrictions
Utilities Electricity, Gas, Water & Sewer, Tele-phone & Internet
Construction Wood Frame
Type Of Building Garden Style Low Rise
OFFERING TERMS
Price $4,400,000
Price/Unit $42,000
Price/SF $81.57
# of Units 105
Year Built / Renovated 1972 / 2017
Building Size 53,944 SF
Lot Size 4.05 Acres
Cap Rate (2020 Revenue) 7%
BEVERLY PLACE
6LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS
UNIT AMENITIES
High Speed Internet
Heating
Smoke Free
Garbage Disposal
Balcony
Air Conditioning
Ceiling Fans
Wired for Cable
Carpeting
APARTMENT HIGHLIGHTS
Self-Service Laundry
Walk Score | 63
Across from Hunters Park
Close proximity to Frandor Shopping Center, Michigan State University & Downtown Lansing
4.7 mi to Capital Region International Airport
NEARBY SCHOOLS
Riddle Elementary School
Pattengill Academy
Eastern High School
FORWARDS LOOKING 2020 FINANCIAL SUMMARY
ANNUALIZED OPERATING DATA
Current
Gross Potential Rent $847,800
Vacancy $41,760
Loss to Lease $-26,892
Other Income $0
Total Income $779,148
ANNUALIZED OPERATING DATA
Current
Taxes $82,392
Insurance $21,845
On-Site Payroll $164,611
Management Fee $32,987
Contract Services $7,209
Repairs and Maintenance $19,339
Legal & Collection $15,385
Telephone/Internet $4,385
Garbage Removal $2,990
Electricity $28,188
Gas $27,622
Sewer and Water $43,149
Misc. & Reserves $21,200
Total Operating Expenses $471,302
Net Operating Income $307,846
BEVERLY PLACE
Situated adjacent to Lansing’s central business district, Beverly Place contains 107 one-, two- and three-bedroom units across three stories. The 83 one-bedroom, one-bathroom units, 20 two-bedroom, one bathroom units and 1 three-bedroom, two-bathroom unit. Originally built in 1961/1972, Beverly Place began renovations in 2016 where 83% of the units have been fully renovated, including the installation of new water saving toilets, aerators, and faucets. The building’s units feature high-speed internet access, ceiling fans, and cable ready hookups; many units also enjoy balconies and patios.
Residents of Beverly Place enjoy the use of community laundry facilities and a surface parking lot. The property benefits from its location directly across from Lansing’s 13-acre Hunter Park and its recently-
renovated pool and splash pad. Michigan State University, Frandor Shopping Center and the rest of downtown Lansing are also nearby, providing Beverly Place’s residents with ample area amenities.
POTENTIAL RE-DEVELOPMENT
Although the portfolio is currently positioned as workforce housing, Beverly Place can be a significant Re-development play. Beverly is well located between the University and Downtown Lansing. The entire corridor between Michigan State and Downtown is currently under major re-development. A new Hospital is being built in close proximity to the property as well as high-end Multi-Family, Condominium, and Retail assets. It is part of the cities development plan to significantly upgrade the corridor in the past and future years. They are very pro-development in the corridor. A 300 unit mixed-use project is high on the city plannings list for the site.
BEVERLY PLACE
LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS 7
8LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS
FINANCIALSBEVERLY PLACE PRICING AND UNDERWRITING
Address Price Price/Unit Price/SF CAP Rate
BEVERLY PLACE 1401 E Kalamazoo Lansing, MI 48912
$4,400,000 $42,000 $81.57 7%
Total $15,200,000 $53,901 $85.50 6.9%
UNIT MIX
Unit Type Number of Units Average SF Price/Unit Price/SFGross Potential Monthly Rent
BEVERLY PLACE: 1 Bed, 1 Bath 83 472 $650 $1.38 $53,950
BEVERLY PLACE: 2 Bed, 1 Bath 21 672 $750 $1.12 $15,750
BEVERLY PLACE: 3 Bed, 1 Bath 1 2,000 $950 $0.48 $950
Total/Weighted Avg 105 Units 53,944 $692/Unit $1.10/SF $70,650
BEVERLY PLACE
EASTSIDE
WEST LANSING
OLD EVERETT NEIGHBORHOOD
N
Hunter Park Municipal Park
Crego Park
Carl G Fenner Arboretum
Scott Park
Reutter Park
Scott Woods Park
Benjamin Davis Park
Cavanaugh Park
Lansing Country Club
Risdale Park
RED Cedar Natural Area
Oak Park
Forest Akers Golf Course
Frandor Shopping Center
Transportation Museum
Sparrow Hospital
Jolly Cedar Plaza
Lansing Railroad Depot
GM Grand River Assembly Plant
MICHIGAN STATE UNIVERSITY
LANSING CATHOLIC HIGH SCHOOL
EVERETT HIGH SCHOOL
WAINWRIGHT ELEMENTARY
RIO ELEMENTARY SCHOOL
POTTER PARK ZOO
LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS 9
10LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS
SALES COMPARABLESBELMONT PARK, MARVIN GARDENS & BEVERLY PLACE
Address# of Units
Year Built Price Price/Unit Price/SF CAP Rate Sale Date
01 AUTUMN RIDGE APARTMENTS
900 Long BlvdLansing , MI 49811
618 1977 $34,500,000 $55,825Common laundry
— 5/22/2014
02 WOODLAND LAKES APARTMENT
4320 Dell RdLansing, MI 48911
344 2004 $31,500,000 $91,570 $82.85 6.85% 6/30/2014
03WATERS EDGE
7530 Waters EdgeLansing, MI 48917
120 1996 $7,000,000 $58,333 $51.07 7.45% 1/23/2015
04PLUMTREE APARTMENTS
229 Parkwood DrLansing, MI 48917
406 1969 $20,200,000 $49,754 $40.18 6.95% 3/29/2016
05FAIRFAX APARTMENTS
831 Brookside Ln Lansing, MI 48917
156 1988 $14,600,000 $93,590 $98.17 5.75% 12/9/2016
06 SANDSTONE CREEK APARTMENTS
1110 Jenne StLansing, MI 48917
169 1975 $7,700,000 $46,107 $50.59 7.00% 2/26/2017
07 ASHTON LAKE APARTMENTS 2610 Marfitt Rd Lansing, MI 48911
120 1989 $8,500,000 $70,833 $72.73 - 6/15/2018
08 RIVERSHELL APARTMENTS 3615-3625 Bayview Dr Lansing, MI 48911
136 1968 $5,600,000 $41,176 $49.12 - 03/29/18
BEVERLY PLACE
N 1
2
3
4
5
6
7
8
EASTSIDE
WEST LANSING
OLD EVERETT NEIGHBORHOOD
LANSING, MICHIGAN
LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS 11
12LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS
RENT COMPARABLESBELMONT PARK & MARVIN GARDENS
Address# of Units
Year Built
Unit Type BD/FB/PB Unit SF Qty Rent Rent/SF
01PLUMTREE APARTMENTS
229 Parkwood DrLansing, MI 48917
406 1969
1/1/02/1/02/1/13/1/1
664 900 950 1,166
64204 50 88
$695 - $820$755 - $890$805 - $910$940 - $960
$1.05 - $1.23$0.84 - $0.99$0.85 - $0.96$0.81 - $0.82
02900 WEST TOWNHOMES
900 Edgewood Blvd Lansing, MI 48911
160 19952/1/13/2/1
8921,211
8080
$875 - $930$1,020 - $1,190
$0.98 - $1.04$0.84 - $0.98
03 WILLOW POND APARTMENTS
7500 Yellow Wood RdLansing, MI 48917
136 19982/1/13/2/14/2/0
1,0001,2001,400
348517
$875 $985$1,150
$0.88$0.82$0.82
04EDGEWOOD VILLAS
1010 W Edgewood Blvd Lansing MI 48911
150 20041/1/02/1/13/1/1
720 9251,120
189042
$638$794$871
$0.89$0.86$0.78
05 RESIDE 3031 APARTMENTS
3031 S Washington Ave Lansing MI 48910
138 19651/1/02/1/02/1/0
615 755 885
811740
$585 - $635$685 - $720$695 - $740
$0.95 - $1.03$0.91 - $0.95$0.79 - $0.84
13LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS
RENT COMPARABLESBEVERLY PLACE
Address# of Units
Year Built
Unit Type BD/FB/PB Unit SF Qty Rent Rent/SF
01 STADIUM DISTRICT
APARTMENTS
500 E Michigan AveLansing, MI 48912
42 2007
1/1/02/2/02/2/02/2/0
597 910 9251,250
1016115
$1,043$1,254$1,368$1,677
$1.75$1.38$1.48$1.34
02 VINE STREET APARTMENTS
1418 Vine St Lansing, MI 48912
14 19660/1/01/1/02/1/0
467 703 893
167
$407$561$637
$0.87$0.80$0.71
03MOTOR WHEEL LOFTS
707 Prudden St Lansing, MI 48906
119 2006
1/1/02/1/02/2/03/2/0
7241,3861,4301,610
943184
$1,172$2,210$2,650$2,935
$1.62$1.59$1.85$1.82
04JI CASE LOFT
113 Pere Marquette Dr Lansing MI 48912
21 2013
1/1/02/1/02/1/02/2/0
9651,1001,6801,370
11118
$1,245$1,617$2,460$1,888
$1.29$1.47$1.46$1.38
BEVERLY PLACE
N
1
2
3
4
5
6
7
8
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EASTSIDEWEST LANSING
OLD EVERETT NEIGHBORHOOD
LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS 14
MARKETING OVERVIEWTHREE-PROPERTY, 282-UNIT MULTIFAMILY PORTFOLIO LANSING MARKET OVERVIEW
KIDDER.COM
16LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS
Lansing is the capital of the US state of Michigan. It is mostly in Ingham County, although portions of the city extend west into Eaton County and north into Clinton County.
The 2010 Census placed the city’s population at 114,297, making it the fifth largest city in Michigan. The population of its Metropolitan Statistical Area (MSA) was 464,036, while the even larger Combined Statistical Area (CSA) population, which includes Shiawassee County, was 534,684. It was named the new state capital of Michigan in 1847, ten years after Michigan became a state.
The Lansing Metropolitan Area, colloquially referred to as “Mid-
Michigan”, is an important center for educational, cultural, governmental, commercial, and industrial functions. The area is home to two medical schools, one veterinary school, two nursing schools, two law schools—including Western Michigan University and Michigan State University—a Big Ten Conference university (Michigan State), the Michigan State Capitol, the state Supreme Court, the Court of Appeals, a federal court, the Library of Michigan and Historical Center, and headquarters of four national insurance companies
As the capital city of Michigan and next-door neighbor to one of the state’s major universities, Lansing attracts people from all across the region and benefits from a culturally diverse landscape. Downtown is a charming, historic district along the Grand River. The Michigan State Capitol overlooks a walkable collective of storefront shops, cafes, and bars, mainly situated along South Washington Square. Lush riverside parks like Hawk Island and Scott Woods give the locals scenic areas to picnic, exercise, or just hang out and enjoy the scenery.
472,400METRO POPULATION
$98,440AVERAGE HOUSEHOLD INCOME
$98,484MEDIAN HOME PRICE
LANSING, MICHIGAN
FLOURISHING METROPOLITAN AREA
Rated as the 3rd best economy in the mid-west, Lansing is experiencing strong economic growth and development throughout its neighborhoods, leading to a metropolitan area with high sustained demand for multifamily properties.
Major employers such as Jackson National Life Insurance Co. recently investing upward of one
hundred million dollars and General Motors have recently invested $580 Million in local expansion efforts, helping fuel Lansing’s strong annual job growth and low unemployment figures. Developers continue to invest in multi-million dollar mixed-use projects in downtown Lansing, with private investment in development experiencing a strong surge in the post-recession years. Overall, Lansing remains poised for steady and stable growth over the long term.
Each year, 4.8 million people visit the region, helping to generate an economic impact of $1.1 billion, according to the visitors bureau. To that end a $15-million Hilton Homewood
1.5%PROJECTED JOB GROWTH
11.3%COST OF LIVING
(BELOW NATIONAL AVERAGE)
$24.4 BIN GROSS METRO PRODUCT
Suites is among four hotels in various stages of construction across Greater Lansing. Another three are approved and slated to open within the next few years. Four more hotels are still in the early planning stages.
In addition to the strong employment drivers, the market enjoys a robust average household income of over $98,000 in Q1 of 2017. The annual average household income has enjoyed a positive growth rate in every year since 2005. The high average household income is derived from several high paying employment opportunities in Lansing. Other Primary drivers of high income employment include, education, with the Michigan State University and medical jobs with Sparrow Health System, which is the largest health system in the area.
LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS 17
18LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS
FLOURISING METROPOLITAN AREA
YearVanacy Rate
Vacancy Change
Asking Rent
Asking Rent Change Population
Population Change Households
Household Change
Average HH Income
Average HH Income Change Employment
Employment Change
2012 3.0 -130 (BPS) $732 2.5% 467,300 0.2% 187,540 0.7% $88,825 2.8% 217,100 0.5%
2013 2.9 -10 (BPS) $748 2.2% 469,110 0.4% 189,260 0.9% $88,043 -0.9% 221,900 2.2%
2014 2.8 -10 (BPS) $762 1.9% 471,270 0.5% 190,910 0.9% $90,785 3.1% 222,670 0.3%
2015 2.0 -80 (BPS) $784 2.9% 472,540 0.3% 192,070 0.6% $94,836 4.5% 226,500 1.7%
2016 2.2 20 (BPS) $812 3.6% 473,670 0.2% 192,940 0.5% $97,645 3.0% 233,170 2.9%
2017 2.1 -10 (BPS) $818 0.7% 474,320 0.1% 194,250 0.7% $101,765 4.2% 236,530 1.4%
2018 2.0 -10 (BPS) $829 1.4% 474,790 0.1% 195,470 0.6% $105,617 3.8% 239,230 1.1%
2019 2.0 0 (BPS) $848 2.2% 475,140 0.1% 196,730 0.6% $109,591 3.8% 241,250 0.8%
2020 2.1 10 (BPS) $871 2.8% 475,380 0.1% 197,920 0.6% $113,261 3.3% 242,120 0.4%
2021 2.2 10 (BPS) $894 2.6% 475,760 0.1% 199,120 0.6% $116,392 2.8% 242,500 0.2%
INVESTMENT HIGHLIGHTS
1Q 2017 Avg SF YTD 1 Year
Studio/Efficiency $611 524 -4.8% 5.8%
1 Bedroom $679 680 -1.6% 3.9%
2 Bedroom $862 976 0.6% 2.9%
3 Bedroom $1,138 1,240 0.9% 6.1%
Avg over period ending 3/31/17 12/31/16
VACANCY RATE DISTRIBUTION
Low 25% Mean Median 75% High
0.0% 1.0% 2.0% 1.6% 2.7% 10.4%
INVESTMENT HIGHLIGHTS CONTINUED
ABOVE-AVERAGE MSA MULTIFAMILY PERFORMANCE
Throughout the Lansing-East Lansing metropolitan statistical area, rental apartment activity has been strong in recent quarters. Effective rents grew by 1.9% between the first and second quarters of 2017, corresponding to a 3.7% annual growth rate; this far exceeds the
national average growth rate of 2.3%. Occupancy throughout the market is equally strong. Market forecast in the next 3 years puts Lansing in the top 3 economies in the midwest and the top 20 nationally. With an occupancy rate of 98 % in the second quarter of 2017; since 2011, the overall rate of occupancy throughout the market has averaged a robust 97%.
UNIT MIX RENT DETAILS
4.3%8.5%
8.6%12.8%
12.9%17.1%
30.1%Over
25.8%30.0%
21.5%25.7%
17.2%21.4%
Under 4.2%
Number of Properties
VACANCY RATE DISTRIBUTION
0
20
40
60
80
100
1 Bed 3 Bed2 BedStudio
Lansing Midwest US
ASKING RENT COMPARISONS
0
$500
$1,000
$1,500
$2,000
1 Bed 3 Bed2 BedStudio
Lansing Midwest US
ASKING RENT PER SF
0
$0.50
$1.00
$1.50
$2.00
$2.50
LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS 19
20LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS
DEVELOPMENTSLANSING, MICHIGAN
Address Description
01SPARROW HEALTH SYSTEMS
1215 E Michigan AveLansing, MI
Sparrow Health System is developing a $64 Million five story Herbert-Herman cancer center. The glass-fronted 132,000 square foot building will house all of the health system’s cancer treatments under one roof for the first time. Complimenting the hospital will be a new dining area, called the Gathering Place featuring a full service Starbucks.
02 SPARROW HEALTH SYSTEM HEALTH CENTER & LABORATORY
1210 W Saginaw StLansing, MI
Also in development is the $20 Million, three-story health center which is set to partially open in November for primary care services. Sparrow Health System is nearing completion of a $10 million Sparrow Reference labora-tory. The 35,000 sf facility will house labs located within the St. Lawrence campus.
03LOC PERFORMANCE PRODUCTS
1600 N. Larch St Lansing, MI
LOC Performance Products announced a $96.5 million expansion to the 1600 N. Larch St property. The expan-sion will provide 700 new jobs and is expected to create a huge economic boost in the area.
04 SCHOOL FOR THE BLIND PROJECT
656 W Maple StLansing, MI
Indianapolis-Based TWG Development will redevelop the former Michigan School for the Blind to low-income senior housing. At $24.4 million the plan includes creating 72 multi-family units and 60 senior units between 3 buildings.
05 REO TOWN INVESTMENT - THE VENUE AT EAST TOWN
2010 – 2020 East, Michigan AveLansing, MI
REO town has seen a $500,000 investment that will allow for development of a brewery and pottery studio.Lansings East Side is the site of “The Venue at East Town”, a $5 million 4 story development that will have 39 apartments atop retail space on the first floor. The Gillespie Co. Strange Matter Coffee and Rajje’s Taphouse have been named as tenants.
06 500 SOUTH WASHINGTON AVENUE
500 South Washington Avenue Lansing, MI
Urban Systems purchased the 500 South Washington Avenue block in the beginning of 2018. The development plans for the property include building a five-to eight-story 170-unit apartment building. The building will also have retail space on the SW corner of Washington Avenue and Lenawee Street.
21LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS
DEVELOPMENTSLANSING, MICHIGAN
Address Description
07ARCADIA ALES & SMOKEHOUSE
2101 E Michigan AveLansing, MI
Lansing developer Kris Elliot of Urban Feast obtained the licensing from Arcadia Brewing Co. to build a brew-pub and restaurant at 2101 E. Michigan Ave. The 10,000-square-foot brewpub will serve Arcadia brands and will also brew six Lansing-only beers on site. The project will also include an outdoor patio to accommodate 150 people.
08CENTER CITY DISTRICT
Albert Ave and Grand River AveLansing, MI
Ballein Management of East Lansing has partnered with a Chicago developer to build two 12-story buildings in downtown East Lansing. The first building would be located on the 100 block of East Grand River Avenue and would include apartments with a grocery store on the first floor. The second would be built in City Lot 1 off Albert Avenue. It would include retail space on the first floor, a parking deck on the next five levels and housing for people 55 and older in the top six floors.
09HILTON HOMEWOOD SUITES
2201 Showtime DrLansing, MI
Hilton Homewood Suites will be the third hotel built since 2015 at the Heights in Eastwood in Lansing Township. Hyatt Place and Fairfield Inn both opened within the last two years at the heights. The 7 story hotel, located next to Walmart, will have 139 rooms.
10 SPRINGHILL SUITES BY MARRIOTT
1100 Trowbridge RoadLansing, MI
A $10-million Spring Hill Suites hotel will be built at the former Howard Johnson motel at 1100 Trowbridge Road in East Lansing. The four-story hotel will have 88 rooms, a swimming pool and a fitness center. A one-story retail building will also be constructed on the site, which will accommodate four tenants, anchored by a restaurant and a drive-thru coffee shop.
11COSTCO
5800 Park Lake RdLansing, MI
A 157,000-square-foot retail warehouse is being built at 5800 Park Lake Road, the site of the former Four Winds Golf Course. When it opens, Costco will employ 150 people. The $30-million project includes a tire center and a standalone gas station that will have 24 pumps.
12MARKETPLACE APARTMENTS
313 N Cedar StLansing, MI
Developer Pat Gillespie is building more riverfront apartments in downtown Lansing. The expansion of Mar-ketplace apartments will add 79 rental units to the area, half of which overlook the Grand River while the rest overlook the Cooley law School Stadium. The apartment complex will have a rooftop patio and amenities that take advantage of the riverfront, though specifics have not yet been announced.
DEVELOPMENT BOOMTHREE-PROPERTY, 282-UNIT MULTIFAMILY PORTFOLIO LANSING DEVELOPMENT BOOM
KIDDER.COM
QUALITY OF LIFE
11.3% Below National Average Cost of Living
21 Minute Average Commute
2,418 Crimes per 100K Residents
EDUCATION
93.1% High School Attainment
34.2% College Attainment
13.8% Graduate Degrees
Top College Michigan State University
HOUSING
$143,400 Median Home Price
7.1% Increase Home Price Change
DEVELOPMENT BOOM
The already up and coming metropolitan area of Lansing is continuing to see an increase in population following a huge development boom. Recent job growth significantly outpaced the national average with the unemployment rate at 4.5%. In the upcoming few years alone, Lansing will undergo multiple business expansions equaling upwards of $397 million dollars, creating hundreds, maybe even thousands of new jobs. Sparrow Health Systems is also in the process of developing a $64 million five story cancer center and a $20 million three story health center to open in November.
Builders have taken notice of these positive trends, and development has returned to the metro. More than 700 housing units have been completed during this cycle with multiple projects are underway. In 2016, after The Outfield, a 4 Star 84-unit apartment in the Stadium District of the Central/Northside Submarket was built, it was fully occupied four months later. Another example is Prestwick Village Apartments, a 66-unit complex built in April of last year which has already reached stabilization. Following new employment and housing opportunities in the area, a $276 million redevelopment project, the largest in the area in recent history, will be creating spaces with retail, restaurants, breweries, and multiple hotels.
Additionally, $2.2 billion in private investment in Lansing over the past 10 years is being used for projects negotiated or spearheaded by regional business
development organization Lansing Economic Area Partnership Inc.
According to data from the Lansing Economic Development Corp., the city’s economic development arm that contracts with LEAP, there has been more than $2.2 billion in private investment in the city of Lansing alone over the past 10 years. A bulk of that — nearly $1.1 billion — came in the past three years and was mainly the result of GM spending roughly $1 billion on its Lansing Delta Township assembly plant, along with adding a stamping plant, logistics operation and hundreds of workers as it retooled its Lansing Grand River assembly plant. Regionally, there has been an additional $199.5 million in private investment outside the city since 2013, according to LEAP.
Michigan State University is an economic driver with more than 50,000 students, high-profile projects such as the $730 million Facility for Rare Isotope Beams for nuclear science and the basic construction and employment that come with being a Big Ten university.
General Motors is adding a stamping plant and a logistics operation to its Lansing Grand River plant to support moving production of the Camaro from Canada to Lansing. It’s part of a long-term strategy to operate its plants at full capacity and adhere to terms of its labor contract with the United Auto Workers.
SOURCE: CRAINSDETROIT.COM
LANSING DEVELOPMENT BOOM EMPLOYMENT & JOB GROWTH
1.5% Projected Annual Job Growth
4.5% Unemployment
$51,386 Median Household Income
1.7% Household Income Growth
1.3% High-Tech Employment
24LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS
DEVELOPMENTSLANSING, MICHIGAN
Address Description
01SPARROW HEALTH SYSTEMS
1215 E Michigan AveLansing, MI
Sparrow Health System is developing a $64 Million five story Herbert-Herman cancer center. The glass-fronted 132,000 square foot building will house all of the health system’s cancer treatments under one roof for the first time. Complimenting the hospital will be a new dining area, called the Gathering Place featuring a full service Starbucks.
02 SPARROW HEALTH SYSTEM HEALTH CENTER & LABORATORY
1210 W Saginaw StLansing, MI
Also in development is the $20 Million, three-story health center which is set to partially open in November for primary care services. Sparrow Health System is nearing completion of a $10 million Sparrow Reference labora-tory. The 35,000 sf facility will house labs located within the St. Lawrence campus.
03LOC PERFORMANCE PRODUCTS
1600 N. Larch St Lansing, MI
LOC Performance Products announced a $96.5 million expansion to the 1600 N. Larch St property. The expan-sion will provide 700 new jobs and is expected to create a huge economic boost in the area.
04 SCHOOL FOR THE BLIND PROJECT
656 W Maple StLansing, MI
Indianapolis-Based TWG Development will redevelop the former Michigan School for the Blind to low-income senior housing. At $24.4 million the plan includes creating 72 multi-family units and 60 senior units between 3 buildings.
05 REO TOWN INVESTMENT - THE VENUE AT EAST TOWN
2010 – 2020 East, Michigan AveLansing, MI
REO town has seen a $500,000 investment that will allow for development of a brewery and pottery studio.Lansings East Side is the site of “The Venue at East Town”, a $5 million 4 story development that will have 39 apartments atop retail space on the first floor. The Gillespie Co. Strange Matter Coffee and Rajje’s Taphouse have been named as tenants.
06 500 SOUTH WASHINGTON AVENUE
500 South Washington Avenue Lansing, MI
Urban Systems purchased the 500 South Washington Avenue block in the beginning of 2018. The development plans for the property include building a five-to eight-story 170-unit apartment building. The building will also have retail space on the SW corner of Washington Avenue and Lenawee Street.
25LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS
DEVELOPMENTSLANSING, MICHIGAN
Address Description
07ARCADIA ALES & SMOKEHOUSE
2101 E Michigan AveLansing, MI
Lansing developer Kris Elliot of Urban Feast obtained the licensing from Arcadia Brewing Co. to build a brew-pub and restaurant at 2101 E. Michigan Ave. The 10,000-square-foot brewpub will serve Arcadia brands and will also brew six Lansing-only beers on site. The project will also include an outdoor patio to accommodate 150 people.
08CENTER CITY DISTRICT
Albert Ave and Grand River AveLansing, MI
Ballein Management of East Lansing has partnered with a Chicago developer to build two 12-story buildings in downtown East Lansing. The first building would be located on the 100 block of East Grand River Avenue and would include apartments with a grocery store on the first floor. The second would be built in City Lot 1 off Albert Avenue. It would include retail space on the first floor, a parking deck on the next five levels and housing for people 55 and older in the top six floors.
09HILTON HOMEWOOD SUITES
2201 Showtime DrLansing, MI
Hilton Homewood Suites will be the third hotel built since 2015 at the Heights in Eastwood in Lansing Township. Hyatt Place and Fairfield Inn both opened within the last two years at the heights. The 7 story hotel, located next to Walmart, will have 139 rooms.
10 SPRINGHILL SUITES BY MARRIOTT
1100 Trowbridge RoadLansing, MI
A $10-million Spring Hill Suites hotel will be built at the former Howard Johnson motel at 1100 Trowbridge Road in East Lansing. The four-story hotel will have 88 rooms, a swimming pool and a fitness center. A one-story retail building will also be constructed on the site, which will accommodate four tenants, anchored by a restaurant and a drive-thru coffee shop.
11COSTCO
5800 Park Lake RdLansing, MI
A 157,000-square-foot retail warehouse is being built at 5800 Park Lake Road, the site of the former Four Winds Golf Course. When it opens, Costco will employ 150 people. The $30-million project includes a tire center and a standalone gas station that will have 24 pumps.
12MARKETPLACE APARTMENTS
313 N Cedar StLansing, MI
Developer Pat Gillespie is building more riverfront apartments in downtown Lansing. The expansion of Mar-ketplace apartments will add 79 rental units to the area, half of which overlook the Grand River while the rest overlook the Cooley law School Stadium. The apartment complex will have a rooftop patio and amenities that take advantage of the riverfront, though specifics have not yet been announced.
This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty, or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.
For leasing information contact
KIDDER.COM
JDS REAL ESTATE SERVICES, INC.
JENNIFER D. STEIN, CO-BROKER
[email protected] N° 6505385865
JDS REAL ESTATE SERVICES, INC.
CHRIS ARMES, PRIMARY BROKER
[email protected] N° 01379750
KIDDER MATHEWS