News & Press

Andover Real Estate Partners

Get In Touch!


  800-561-1479

Real Estate Investment Properties in Florida, Michigan, Ohio & Indiana

Get In Touch
Real Estate Investment Properties in  Florida and Michigan

Multi Family Real Estate Investing

Multifamily Housing Drives U.S. Real Estate Growth
Multifamily Housing Drives U.S. Real Estate Growth

Based on the ninth annual Akerman U.S. Real Estate Sector Report by top U.S. law firm Akerman LLP 70% of real estate executives and investors say they are more optimistic about for 2018 market activity than in the last two years.

According to the firm’s findings, executives agree that a top trend is growth driven by multi-family housing. Sixty three percent of respondents say real estate investing in multifamily is the most active segment this year based on the Akerman data. This marks a stark change from 2017 when 43 percent of commercial real estate leaders predicted single-family homebuilding would outpace investing in multifamily properties.

"We’ve found that the market continues to be active for the purchase and redevelopment of multifamily properties," states Rob Stone, Founder and CEO of Andover Real Estate Partners. In 2018 alone Andover has closed 3 deals totaling $70 million in Southeast Michigan and will be closing on another apartment community in South Florida for $40 million in the 4th quarter. They continue to be active in Detroit and South Florida.

Akerman findings show participants split almost equally behind two major elements that will define the course of U.S. commercial real estate for the next three years. Forty-eight percent of survey participants ranked the influx of new technology as one of the two most important trends for the sector, along with the biggest overhaul of the U.S. tax code in 30 years recently passed by Congress.

A majority of executives surveyed stated that the creation of jobs in 2018 will be either partially or significantly higher than in 2017. And the remainder (29 percent) say it will be about the same as 2017. Very few see job creation in 2018 lower than in 2017.

Top sources for equity and debt were cited as private equity and banks by more than half of Akerman’s survey participants. Akerman data shows that institutional lenders and private equity funds maintained a leading role in real estate financing in the last three years. This is a sign of further market strength and for the U.S. real estate sector after the 2008 downturn. Other popular financing sources identified by a quarter or more of executives surveyed include commercial mortgage backed securities, foreign investors, insurance companies, and real estate investment trusts.

Detroit and South Florida both continue to be strong markets for investing in multifamily properties. Detroit’s surging demand for apartments shows that the city's resurgence is more than just a blip on the map and in south Florida growth continues as evidenced by strong redevelopment of student housing near university campuses.

Andover Partners is positioned to ride the wave of multifamily housing to continue to do business in robust markets such as in the Midwest and South Florida and looks forward to continuing to acquire value based deals for its’ partners and investors.
View News & Press

Andover Real Estate Partners Closes On Another Value Add Deal In Canton, Michigan

Andover acquired Canton Club East Apartments in August 2016, an extremely well built and maintained community located in Canton, Michigan. This was their third acquisition in this submarket in the past 24 months. Canton Club East has a strong operational and financial history with a 95% plus average occupancy for the past 10 years and an NOI increase of 8.4% annually since 2010. Additional upside exists from conversion of LIHTC units to market-rate with unit upgrades and commensurate rent increases. Other operational improvements being implemented include the billing back of utilities to residents as well as significant reduction in payroll. The property is projected to produce investor cash flow of 12.9% in year one and average annual investor cash flow of 13% and a projected investor IRR of 19.3% over a 10 year hold period.

Property Details

Andover Acquires Largest Deal to Date - Notre Dame Student Portfolio

Andover Real Estate Partners Acquires Largest Deal to Date Overlook at Notre Dame

In November 2016 Largest Deal To Date Andover/M Group partnered with Coastal Ridge Real Estate in acquiring two brand new exceptionally well-located, high-end student apartment communities adjacent to the campus of Notre Dame University in South Bend, Indiana. This was a $62,000,000 off-market transaction. Built in 2013 thru 2016 Irish Flats (98 units / 188 beds) and Overlook at Notre Dame (357 units / 365 beds) are communities considered to be best-of-class design with a complete package of amenities.

The partners saw an opportunity in the submarket with a lack of supply of on campus housing. These two communities are two of only four purpose built properties for student housing that were built on or immediately adjacent to the university in the last ten years. The properties were 100% leased with waiting lists at the time of acquisition for the 2016/2017 school year. The investment structure for the combined acquisition will provide average annual investor cash flow of 11.5% and projected IRR of 18.9% over a 10 year hold period.

Property Details

The Health Dare Reviews

  • ReviewsReviewsReviewsReviewsReviews
    Andover recognizes that “people make the world go ‘round” which is why its focus on being closely connected to its investors, lenders, and third party partners is so critical. Its really about “who we be” more often that “what we do”. Our integrity, authenticity, and honesty is what drives Andover to be a reliable, trusted partner in all its dealings.

    Rob S. - Andover Real Estate Reviews
  • ReviewsReviewsReviewsReviewsReviews
    Andover delivers long-term, superior risk-adjusted returns utilizing the following strategies. Andover’s aggressive approach to property and asset management generate higher returns by adding value through 1) improving units that can net higher rents 2) increasing “other income” while at the same time providing value and additional services for its residents.

    Rob S. - Andover Real Estate Reviews
  •   Press & News
  •   Social News Feed
andover-partners-real-estate-investment-firm

Our Mission Statement

Andover Real Estate PartnersAndover Real Estate Partners recognizes that “people make the world go ‘round” which is why its focus on being closely connected to its investors, lenders, and third party partners is so critical. Its really about “who we are” more often that “what we do”. Our integrity, authenticity, and honesty is what drives Andover to be a reliable trusted partner in all its dealings.