Long Island based Real Estate firm, The Crest Group, has announced that it has acquired The Grand, a 102 unit Multi-Family asset in Grand Blanc, Michigan. This is the firm’s most recent acquisition and marks its return to the state of Michigan, which it has frequented over the past eight years.
Strategically, The Crest Group has focused on Multi-Family assets with larger footprints relative to other assets in the market. The Grand fits the picture well, with an average unit size of 2,012 square feet compared to a market average of 908 square feet. David Arnow, Chief Investment Officer at The Crest Group, commented that “as pockets of the population move away from traditional single family home ownership, the need for more space in transient or temporary style housing becomes more important to residents, especially when it comes to retaining them”.
The firm’s CEO, Enrico Scarda, commented on the firm’s interest in scaling a business in the sub-market; “We see a strong opportunity to grow a business around the Michigan Multi-Family market which has seen limited additional supply, strong market occupancy and consistent rent growth for nearly a decade in key sub-markets. Strong incremental yield exists in situations where we can be confident in the sub-market, especially relative to the more active Multi-Family markets in the US”.
The Grand boasts garages in nearly every unit, at least 2 bedrooms property wide, and great access major roadways as well as local amenities such as Grand Blanc’s business district where positive employment drivers are in process.
The firm welcomes the opportunity to grow its involvement in other markets outside of Long Island. It is actively looking for development and in-place opportunities in North and South Carolina, Florida and Michigan. The Crest Group anticipates adding more markets to its purview in the coming years as it scales its management and value-add businesses.