Jonathan Rose Companies Acquires Crosstown Parkway Senior Housing Apartments in Kalamazoo for $20.5M

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Crosstown Parkway
This transaction marks the fifth acquisition for the Rose Affordable Housing Preservation Fund VI and grows the firm's Michigan portfolio to 16 communities.

Jonathan Rose Companies, a leading mission-driven real estate investment and development firm, today announced the acquisition of Crosstown Parkway Apartments (“Crosstown”), a 201-unit, affordable housing community designated for elderly residents located at 550 W Crosstown Parkway in Kalamazoo, Michigan, for $20.5 million.

The acquisition was financed with a $19.1 million loan from Freddie Mac arranged by Berkadia.

Jonathan Rose Companies will be undertaking an $8.6 million rehabilitation of the property, including upgrades to unit interiors, building systems and shared spaces, as well as energy efficiency enhancements aimed at achieving Enterprise Green Communities (EGC) certification. In addition to physical and environmental improvements, the firm will also be deepening Crosstown’s social impact by establishing a full-time resident services coordinator to help residents navigate benefits, healthcare and other critical resources.

“With well over a dozen properties across Michigan, we’ve developed a deep understanding of the region’s affordable housing landscape, and Crosstown Parkway represents exactly the type of community we aim to preserve,” said Max Jawer, Managing Director of Acquisitions at Jonathan Rose Companies. “It’s a well-located, long-standing property serving older adults, and it gives us the opportunity to apply our full preservation strategy – physical upgrades, climate-conscious improvements, and resident supportive services – all in a region where we’ve built strong relationships and have a growing footprint.”

In keeping with its long-term mission to preserve affordable housing, Jonathan Rose Companies successfully renewed and extended the existing Section 8 Housing Assistance Payment contract for an additional twenty years. The subsidy contract was set to expire in 2028. Crosstown will also maintain rent and income restrictions for elderly residents making at or below 60% of Area Median Income (AMI).

Situated just south of downtown Kalamazoo, Crosstown is close to public transit, grocery stores, and Western Michigan University. Residents enjoy a range of on-site amenities including a library, a game room, and a community room with a kitchen. Originally constructed in 1977, Crosstown underwent a renovation in 2008 financed by Low Income Housing Tax Credits (LIHTC) and bonds from the Michigan State Housing Development Authority (“MSHDA”).

As the U.S. continues to face a mounting affordability crisis, the preservation and enhancement of affordable communities is more important than ever. This acquisition advances the fund’s mission to preserve existing affordable housing while creating new opportunities for residents. Jonathan Rose Companies’ longstanding investment strategy takes a holistic approach – combining strong financial performance with a deep focus on environmental sustainability and social impact. Each project incorporates design and resilience measures that help mitigate the effects of climate change, while prioritizing on-site services that support resident health, education and economic mobility.

Rose acquired the property from Medallion Management, Inc. (“Medallion”), a Michigan-based owner and operator. The sale was arranged by Neal Wolf from Performance Real Estate Advisors. Medalion will remain in place as property manager following the transaction.

“Medallion Management is proud to continue managing Crosstown Parkway under its new ownership,” said Scott Belts, CEO of Medallion. “Our team is committed to providing residents with exceptional service and maintaining the strong sense of community that Crosstown Parkway has been known for over the past 48 years. We are excited to be part of the future with Jonathan Rose Companies and look forward to the improvements they have planned for the property.”