Mamaroneck, New York – July 6, 2022 - LRE Management LLC (“LRE”), a national real estate private equity firm, announced that a Joint Venture entity in which it has an equity interest completed the acquisition of Club Meridian Apartments (“the Property”), a 406-unit multifamily property located in Okemos, MI, a suburb of East Lansing. LRE contributed $17.1 million of equity in connection with the off-market transaction. Mortgage debt was obtained for the purchase that carries an interest rate of 4.4%, 10-year maturity date and interest only period through 2032.
Built in 1991, this garden-style Class B community has 120 one-bedroom, 284 two-bedroom units and 2 three-bedroom units. The Property is well positioned in an affluent suburb of Lansing, Michigan’s capital city and in proximity to the 12th largest university in the country, Michigan State University, home to over 55,000 students. The Property offers residents a number of amenities, including a pool, clubhouse, gym, and both tennis and basketball courts.
“This investment represents our first outside the Sun Belt in several years. We see Lansing as a strong recession resistant Michigan market, a city bolstered by education, government, and the automotive and healthcare industries.”, shared Eric R. Londa, Managing Partner at LRE. “We saw a strong opportunity at Club Meridian to secure long-term fixed rate debt, onboard an institutional property manager, execute a light value-add program to enhance unit interiors and property-level common areas and to ultimately drive the in-place, below market rents, closer to comparable properties.”
In addition to the significant employment presence of the Education, Health and Government (“Eds & Meds”) sectors in Lansing, General Motors is investing $7.0 billion in four Michigan manufacturing facilities to make Michigan the hub of Electric Vehicle development and manufacturing. Lansing will receive a $2.6 billion investment from GM to build a new lithium battery factory in a joint venture with LG. And it’s worth noting that Lansing is already home to GM’s two newest and most technologically advanced automotive plants.
LRE acquisitions continue to target apartment communities in high growth primary markets where there is a supply-demand imbalance and secondary and tertiary cities with solid fundamentals.
About LRE Management LLC
LRE Management LLC ("LRE") is a national private real estate company that acquires Multifamily properties throughout the country. LRE invests side by side with its network of high net worth and family office partners by co-investing or forming Joint Ventures with proven sponsors and operators. LRE’s core investment principle is to deliver tax efficient current income while generating long term capital appreciation for its investment partners. Since its founding, LRE and its associated entities have acquired over 6,500 units across 22 properties, with transactions totaling in excess of $1.0 billion. For more information about LRE Management, visit www.lremanagementllc.com, or Linkedin or call (704) 253-0520
Contact:
Eric R. Londa | Managing Partner
LRE Management LLC
info@lremanagementllc.com