Southgate Apartments, a 624-unit apartment community in Southgate, Michigan, represents an extraordinary opportunity, providing an immediate economy of scale in a location with outstanding apartment market metrics. Since 2016, the property has received approximately $9.3 million in significant capital improvements, including $4.73 million invested by the prior ownership from 2016 through 2020 in primary building components such as asphalt replacement and seal coating, landscaping, window replacement, HVAC, deck replacement, and roof replacements. Because the property was in excellent physical condition, current ownership has focused on value-add improvements, including unit interior renovations, full kitchen and bath upgrades with quartz countertops, and soft-closing cabinets. Additional upgrades include exterior painting, clubhouse improvements, and fitness center and common area enhancements. As of August 19, 2022, 147 units had been completed, with an additional 18 units in process, and rent premiums for renovated units have reached $400 since acquisition. This sets the stage for a new owner to take advantage of the proven value-add upside.

Southgate Apartments is comprised of 12 two- and three-story garden-style frame-constructed buildings with brick and vinyl exteriors and asphalt-shingle pitched roofs. The property consists of 488 apartment units, 10 two-story buildings with full basements consisting of 58 townhome units located in Wyandotte, and one six-story senior building consisting of 78 apartments. Built in 1965, the property is situated on 21.23 acres of land and contains 522,249 rentable square feet.

Community amenities at the property include a swimming pool with sundeck, clubhouse, fitness center, laundry facilities, playground, play area, business center, extra storage, courtyard, carports, and covered parking. Unit amenities at Southgate Apartments include a fully equipped kitchen with a refrigerator, range, microwave, dishwasher, and garbage disposal, as well as air conditioning, cable readiness, ceiling fans, vertical blinds, personal storage, oversized or walk-in closets, and a balcony or patio.