Riverview Crossings Apartments

Fairway America Management Group IV, LLC (“Fairway”) and Pepper Pike Acquisitions Associates, LLC (“Pepper Pike”) (collectively, the “Co-Managers”) intend to acquire Riverview Crossings (the “Property”) and execute a value-add renovation plan to improve the quality of the property and bring rents up to market. Fairway has done over 15 deals with Pepper Pike. The sponsor has a successful track record in the Detroit market, having recently exited three assets in December 2021 at per-unit pricing above this property’s acquisition price.​

• Low Basis: This opportunity was sourced off market and is being acquired at an attractive basis of $101,449 per unit.
• Strong Demand: Submarket rent growth projected by CoStar is 4.6% for the next three years; vacancy today is only 3.7%.¹
• Mark to Market Opportunity: Average in-place rents at the Property are significantly below market. Within 4 miles of the property there is a similar quality building but in an inferior location, that was able to achieve average rents over 16% higher than at Riverview Crossings.​²
• Renter Friendly: With a median household income of $60,666 within the 5-mile radius,³ the Property’s underwritten post-renovated weighted average rents of $1,183 per month will still only be a 22.8% rent burden on median income residents. ​
• Value Add Return on Investment: By implementing the $7.3 million value-add program, we are projecting to capture a $300 monthly increase in rents over and above the mark-to-market increases. ​