McKinley Launches Sale of Select Multifamily Assets in Florida, Michigan and GeorgiaAugust 30, 2018
MULTI-STATE - As McKinley Celebrates 50 years in business, our company has strategically shifted our focus to what the next 50 years look like. McKinley has implemented three key efforts to position our generational business for the long term and to bring us “back to our roots”with our sights on the future:
1.) McKinley has sold the majority of our retail and office holdings to once again become primarily a Multifamily platform. In doing so, we have also added a new asset class to the McKinley Companies, a quality investment grade NNN portfolio. Going back to our Multifamily roots as a business strategy has had many positive attributes on many levels, allowing our people, who are extraordinary at Multifamily to focus their abilities and drive the business to where it needs to be.
2.) McKinley has refinanced our Multifamily holdings with long-term debt at historically low interest rates. McKinley fully expects to have those mortgages paid off over time, and our currently low-leveraged business becomes free and clear. With this objective, we have built a fortress balance sheet along with extraordinary assets and cash flow that will fuel the future into the next 50 years.
3.) The last phase of the effort is to sell select Multifamily holdings that are not located in our core markets of Washtenaw County - Ann Arbor/Ypsilanti (since 1968) and Orlando/Hyde Park in Tampa (since 1982). The Washtenaw County and Central Florida core markets are where our people work and live. McKinley knows these markets the best, and the majority of our assets will still sit in these core markets after this sale. While this offering is large by industry standards, the sale is still only a fraction of what McKinley owns as an enterprise.
“While we never sell assets, particularly exceptional assets like we are offering in this sale, Ron Weiser, our Founder, and I have spent much time contemplating and planning what the McKinley Companies looks like as a generational business for the next 50 years. We are pleased that not only have we built an exceptional business, but we have made the right moves to position our generational business through 2068, our 100th anniversary,”stated Albert M. Berriz, Managing Member, Chief Executive Officer, Board Member and Co-Owner of McKinley.
“We have selected the team of Berkadia led by Ernie Katai, and Consortium Capital, LLC, led by Harry Collison, to lead the sales effort. We have deep roots with both organizations dating back over 30 years, and we are very confident that they will do a terrific job with the sale of these extraordinary assets,”added Berriz.
For more information about the McKinley Multifamily offering, please check out: