Institutional Property Advisors (IPA), a division of Marcus & Millichap, specializing in capital markets services for major private and institutional clients, announced the $16,975,000 financing for the acquisition of a student housing property consisting of 62 units located adjacent to the University of Michigan’s main campus at 1700 Geddes Avenue in Ann Arbor, Michigan.
“IPA Capital Markets successfully secured competitive bridge financing with a lender that provided maximum flexibility, allowing the borrower to execute their business plan,” said Hulsh. “The plan involves densifying the property’s oversized two-bedroom units into four-bedroom units by converting per-unit metering to bed-by-bed charging. While the individual pricing per bed will decrease, the overall unit price will increase with the addition of beds, optimizing the net-operating-income during this transitional phase.”
“The existing property comprises 123 beds across 62 units, and the sponsor’s value-add strategy includes adding beds to the Geddes Hill apartments, as the two-bedroom units, which average approximately 1,050 square feet, are oversized,” Hulsh added. “Additionally, the property has maintained 100% occupancy for over 25 years, serving as a strong indicator of both current and future demand.”
Marcus & Millichap, Inc. (NYSE: MMI) is a leading national brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. As of December 31, 2023, the Company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The Company also offers market research, consulting and advisory services to our clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion.
Institutional Property Advisors (IPA) is a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios.
