In January 2018, Andover Real Estate Partners acquired a 274 unit community in the densely populated town of Northville, the 18th largest county in the country. The Northville Township rental market is strong, with average market-wide rent increases of 6.5% the last two years in a row. High barriers to entry exist due to limited available zoned land and high construction costs.
Northville’s demographic is highly desirable, with low unemployment, a strong school system, high average income, and high average land and home values, and surrounded by major retail and entertainment centers.
Andover’s strategy is to complete the renovation of the remaining 66 units, and seek a similar or higher ROI through rent increases.