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3140 E Michigan Ave, Lansing, MI
Michigan State University
Gateway Lofts Lansing
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QUICK STATS
130,527 SF
SF:
76.69 units / acre
Density:
2.36 acres
Site Size / Acreage:
5
Stories
1
Buildings
2022
Built
181
UNITS
721 SF
Average SF:
$2.19
Rent / SF:
[CEROS OBJECT]
Gateway Lofts provides residents with a new standard of living in its modern apartment community in Michigan’s capital city of Lansing, with easy access to East Lansing and Okemos, home to Michigan State University and the Michigan State Capitol. The pet-friendly community is a convenient location for commuters or city lovers, as residents are just less than two miles away from Michigan State University, and three miles from Lansing Community College and Downtown Lansing with easy access to I-127, I-496.
The 181-unit, five-story apartment community is ideally located near 30+ restaurants and bars in downtown Lansing, shopping at the nearby Lansing Mall, recreational activities, major employers, and excellent public schools – conveniently located in an award-winning school district.
Along with a variety of local restaurants, entertainment, and shopping nearby, the newly built community offers spacious studio, one-, and two-bedroom floor plans ranging from 446 – 1,194 square feet. Essential amenities include a fully equipped modern kitchen with a pantry, bar seating, stainless steel appliances, and granite countertops. Additional features include wood-style plank floors, plush carpeting, walk-in closets, washer/dryer, pendant lighting, and a linen closet. Residents enjoy community amenities including a fitness center, resident lounge with billiards and a complimentary coffee bar, conference room, package lockers, bike storage on each floor, and 24-hour emergency maintenance.
Property Description
[CEROS OBJECT]
Opportunity Highlights
Institutional-quality Asset
Brand New Construction – phenomenal lease up traction
High demand unit mix of studio, 1-bed and 2-bed units
Over 50,000 students enrolled at MSU
Pedestrian to campus
Preferred asset for grad and professional studies students
[CEROS OBJECT]
Trophy Asset: Gateway Lofts is the premier multifamily community in Lansing. Quality construction, best-in-class amenities, and record setting rents confirm that Gateway Lofts is unrivaled, setting a new standard for luxury apartment living in Michigan. This institutional quality site will be one of the most sought-after opportunities Lansing has ever seen. Gateway leased up in just six months.
The Offering
Strong Submarket Growth: Gateway Lofts is located just east of Downtown Lansing and just west of Michigan State University. This Submarket continues to see growth on all fronts. Year-over-Year rent growth is an astonishing 10.1% for the Submarket with overall occupancy at 95.9%. Limited new construction coalesced with the strong growth metrics make the Lansing submarket primed for continued growth.
New Financing Opportunity: Free and clear providing investors the flexibility to take full advantage of the aggressive capital markets with low interest rates, long-term debt, and maximum leverage
Excellent Retail Phase: Two Outstanding Leases, Ortho Rehab (5 Year), Hooked bookstore and coffee (10 Year), both leases with annual rent increases and are extremely successful with outstanding traffic. Approximately 3,900 square feet available for lease.
Premier Location: Situated at the I-496 and the US 127interchange, Gateways Lofts is uniquely located within 3 miles of the new McLaren Hospital, 1.5 miles to MSU and only a short drive to the Delta GM facility, Jackson National Life Insurance and Downtown Lansing and East Lansing where employment opportunities are extensive.
Best-In-Class Amenities: Gateway Lofts boasts the market’s premier amenity package including, but not limited to; High-End Resident Lounge w/ Billiards, 24-Hr Fully Equipped Fitness Center, Complimentary Coffee Bar, Package Lockers, Bike Storage on Each Floor, In-Unit Washer/Dryers, Luxury Finishes.
High-Quality Construction
[CEROS OBJECT]
• Stainless Steel Appliances
• Granite Countertops
• Kitchen Pantry
• Walk-In Closets
• Pendant Lighting
• Washer / Dryer In Unit
• Linen Closet
• Wood-Style Plank Flooring
AMENITIES
Unit Amenities
• Fitness Center
• Resident Lounge with Billiards
• Conference Room
• Complimentary Coffee Bar
• Package Lockets
• Bike Storage on Each Floor
Community Amenities
LOCATION
GALLERY
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.
© 2023 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. For state licensing details for the above entities, visit: https://www.berkadia.com/licensing/.
Rick Brace
Senior Director
248.341.3319
rick.brace@berkadia.com
28411 Northwestern Highway, STE 300
Southfield, MI 48034
Phone: 248.646.7701
Berkadia.com
Mike MCclafferty
Associate Director
215.328.1298
mike.mcclafferty@berkadia.com
Corey Krug
Senior Director
248.341.3338
corey.krug@berkadia.com
Investment Sales
CONTACT Info
Detroit Office
Kevin Dillon
Senior Managing Director
248.341.3309
kevin.dillon@berkadia.com
Charley Henneghan
Director
248.341.3303
charley.henneghan@berkadia.com
Jason Krug
Senior Managing Director
248.341.3344
jason.krug@berkadia.com
Mortgage Bankers
Peter Benedetto
Senior Managing Director
248.208.3462
peter.benedetto@berkadia.com
Jillian Maki
Director
248.208.3465
jillian.maki@berkadia.com
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Location
Offering
Highlights
DOC CENTER
Terms of Use
Privacy
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Gallery
Kevin Larimer
Senior Managing Director
248.341.3305
kevin.larimer@berkadia.com
Location
Offering
Highlights
Document Center
Contact
Privacy
Terms of Use
Gallery
3140 E Michigan Ave, Lansing, MI
Michigan State University
Gateway Lofts Lansing
Visit Doc Center
QUICK STATS
130,527 SF
SF:
76.69 units / acre
Density:
721 SF
Average SF:
$2.19
Rent / SF:
$2.35
Avg Rent / SF
2022
year built
99%
Occupied
236
Beds
181
UNITS
[CEROS OBJECT]
Gateway Lofts represents an exceptional investment opportunity that fills a high-demand niche for the Michigan State community. Situated directly on Michigan Avenue, just west of the main dorm complex for freshmen, Gateway Lofts appeals to a broad segment of the market looking for lower density than most other student housing assets provide. With most other purpose-built student housing assets focused on higher density three-, four- and five-bedroom units, Gateway addresses the needs of junior, senior, graduate and professional studies students that desire to live alone or with only one other roommate. There is a significant imbalance in the market as demand for low-density units greatly exceeds supply.
Property Description
[CEROS OBJECT]
• Stainless Steel Appliances
• Granite Countertops
• Kitchen Pantry
• Walk-In Closets
• Pendant Lighting
• Washer / Dryer In Unit
• Linen Closet
• Wood-Style Plank Flooring
Unit Amenities
• Fitness Center
• Resident Lounge with Billiards
• Conference Room
• Complimentary Coffee Bar
• Package Lockets
• Bike Storage on Each Floor
Community Amenities
AMENITIES
[CEROS OBJECT]
Institutional-Quality Asset, Pedestrian to MSU’s 52,000+ Students
Newer Construction, Steps from MSU’s Brody Dorm Complex which is the Main Freshman Dorm Center
Very Attractive Acquisition Financing Available that Enhances the Cash Yield
MSU’s Purpose-Built Student Housing Occupancy is over 98% with YOY Rent Growth Above 7%
High Demand Unit Mix Exclusively of Studios, One- and Two Bedroom Units
Excellent Retail Tenants with Two Long-Term Leases (5 YRS & 10 YRS)
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Opportunity Highlights
[CEROS OBJECT]
High-Quality Construction
Constructed by the highly regarded Continental Building Company, Gateway Lofts is a five-story building with solid construction features: steel frame on the first floor and wood frame above, with brick and vinyl siding exterior and a white rubber-membrane roof. Each unit features 9” ceilings, wood-style plank floors and granite countertops.
Phenomenal Market Fundamentals
As MSU has grown to over 52,000 students as of Fall 2024, market occupancy exceeds 98%, with assets situated along Michigan Avenue and Grand River Avenue enjoying occupancy above 99%. Year-over-year rent growth exceeded 7% and similar growth is anticipated for Fall ’25 lease up. There is no current development in the pipeline and the university is forecasting continued growth.
New Financing Opportunity
Multiple lenders have expressed a willingness to provide aggressive acquisition financing with maximum proceeds, lower spreads, full term interest only, short and medium term, and potentially pre-pay flexibility.
Dominant Location
Ideally situated on Michigan Avenue, immediately west of campus and 2 miles east of the State Capitol. Students are at home in this location as it is pedestrian to the 6 freshmen dorms that comprise the Brody Dorm Complex. There is robust activity in the area from the combination of the dorms, the Frandor Shopping Center, Old Bag of Nails Pub and the new AC Marriot and Hyatt House Hotels.
Low Risk Profile Investment
The large and growing enrollment, zero development pipeline, limited studio, one- and two-bedroom units in the market, full market occupancy and strategic asset location pedestrian to MSU with frontage on Michigan Avenue, combine to make Gateway Lofts a secure investment opportunity now and into the foreseeable future.
The Offering
High-Quality Construction
LOCATION
GALLERY
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage company business in Nevada.
© 2024 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. For state licensing details for the above entities, visit www.berkadia.com/licensing.
260 E. Brown Street, Ste 150
Birmingham, MI 48009
Phone: 248.646.7701
Investment Sales
CONTACT Info
Detroit Office
Kevin Larimer
Senior Managing Director
248.341.3305
kevin.larimer@berkadia.com
Brandon Buell
Senior Managing Director
346.444.8982
brandon.buell@berkadia.com
Mortgage Bankers
Aaron Moll
Managing Director
248.208.0529
aaron.moll@berkadia.com
Steve Skok
Managing Director
312.845.5164
steve.skok@berkadia.com
$2.35
Avg Rent / SF
721
Avg Unit SF
2229 San Felipe Street, Ste 1600
Houston, TX 77019
Phone: 713.974.1300
Houston Office
125 South Wacker Drive, Ste 400
Chicago, IL 60606
Phone: 312.845.8500
Chicago Office
Peter Benedetto
Senior Managing Director
248.208.3462
peter.benedetto@berkadia.com
Trevor Friday
Associate Director
248.341.3307 trevor.friday@berkadia.com
