We’ve invested $4.9 million in the acquisition and renovation of Huron River Apartments, a 38-unit apartment complex in Ann Arbor, Michigan. At the time of our acquisition, 36 of the 38 units (97%) were occupied.
Business plan
The borrower, Wickfield Properties, intends to use our capital to renovate all 38 units with the aim of increasing rents. We anticipate that they will pay back our loan within 24 months.
Why we invested
- Strong relationship with local partner: This is our second investment with Wickfield Properties, a real estate owner-operator focused on the refinance, development, and operation of multifamily properties in Michigan. Wickfield manages a diverse real estate portfolio that includes approximately 2,000 residential units and 600,000 square feet of commercial space, valued in excess of $250 million.
- Great location near UM: The Huron River Apartments are located in Ann Arbor, Michigan, just a mile from the University of Michigan campus. Consistently ranked as one of the best public universities in the country, UM enrolls 46,000 students and employs over 20,000 faculty and staff. The Ann Arbor market represents a strong opportunity for multifamily demand as the university continues to grow and develop the area's well-educated labor force.
- Attractive margin of safety: The borrower has $1.1 million of equity junior to our position. They would have to lose their entire investment before our principal was threatened.
