Andover acquired Canton Club 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, located in Canton, Michigan, offers chic, spacious one, two and three bedroom floor plan designs with upgraded interior features, large walk-in closets, open kitchens and a breakfast bar for in-home entertaining.
Canton Club 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.