August 22, 2017
Orlando, Florida - The McKinley Companies announced today the closing of $42 million in long-term financings with Fannie Mae originated by Key Bank on two Multifamily communities located in Orlando and Winter Park, Florida. Amalfi Universal Orlando, a 252-unit community, and Serena Winter Park, a 120-unit community, are two recent Multifamily investments McKinley acquired in 2016.
"We are thrilled to lock up long term debt on both of these assets in this continued favorable interest rate environment. We secured 15-year fixed rate term financing very early in the life of these investments given the excellent lease-up success," offered Jim Willett, McKinley's Senior Vice President and Managing Director Finance. "We have a very large pipeline of over $150 million in 15 year fixed rate debt in process with Fannie Mae and Key Bank as part of our effort to lock up all of our remaining acquisition debt, all of which will be closed by early Q4 of this year," added Willett.
McKinley and Key Bank have had an extraordinary long term relationship now spanning over 20 years. Key Bank has provided acquisition and renovation financing, bridge and gap financing, lines of credit, and long term capital markets access including CTL, CMBS, HUD, and Fannie Mae financings in support of McKinley’s efforts over the years. "We are excited to execute this next leg of locking up long term debt for our generational Multifamily platform. Over 90% of our debt is now locked up with 35-year fixed rate financing closed at historical low rates over the past 5 years, and this next tranche of 15-year fixed rate financing will be equally accretive to our balance sheet and long term asset value as well. Our very good friends at Key Bank have done a superb job with this effort, and we are thrilled with the outcome," added Willett.
Winter Park and the Southwest Orlando Theme Park market, are core investment markets for McKinley. McKinley has actively invested in Central Florida since 1982, and it is the largest Multifamily Owner/Operator along the Interstate-4 Corridor with communities located in Daytona Beach, Winter Park, Orlando, Gainesville, Hyde Park/Downtown Tampa, Clearwater, and the barrier islands of Hillsborough County including Gulfport, South Pasadena and North Redington Beach. "Our people and our leaders in Central Florida make the entire difference in everything we are doing," offered Albert M. Berriz, McKinley's CEO, Co-Owner and Managing Member, "It’s really that simple, we have extraordinary leadership that "live and work" on the ground in Central Florida with Erin Foley, Brent Boyette, Jason Schaller and Mary Williams. They have allowed us to grow and expand our efforts in this most promising market, and they are creating endless opportunities for themselves and our people. We have a very bright future along the Interstate-4 Corridor, it is without question our fastest growing market, and we have our people and our leadership to thank for that because they are absolutely extraordinary!" added Berriz.
August 17, 2017
Spark @nn Arbor USA writes an interesting post about the need for workforce housing in Ann Arbor. Click Here
August 14, 2017
Plymouth-based real estate company Hillside Investments LLC has paid $50 million for a pair of key downtown Ann Arbor buildings. To read more Click Here
August 11, 2017
The McKinley Companies is proud to announce the sale of two of its trophy assets, McKinley Towne Centre and Liberty Square located in the prestigious Tech Corridor in Downtown Ann Arbor. McKinley acquired McKinley Towne Centre in 2005 after the move-out of a major bank impacted the State Street area leaving the building essentially vacant. Shortly after in 2007, McKinley acquired the also vacant Liberty Square, after which it set forth on a major mixed use redevelopment of the existing buildings and sale of the vacant parcel located across the street. This parcel became the purpose built student housing development known as Sterling 411 Lofts, the first of many luxury student apartment developments in the area. What followed was a revitalization of the area now known as the Ann Arbor Tech Corridor which houses many of the most exciting companies in Downtown Ann Arbor today.
"Our team is very proud of its efforts over the past 12 years. We achieved our specified goals of making McKinley Towne Centre the connection of "town and gown", the hub of cultural activities in the downtown, igniting the tech corridor, and activating from a pedestrian vantage point the connection along Liberty between Main and State streets. We are also confident that the Hillside Investments team will carry on our efforts and take what we have done to a new level for the community" said Albert M. Berriz, McKinley's CEO, Co-Owner and Managing Member.
McKinley embarked on a major initiative to dispose of its retail and office assets several years ago, and this sale transaction is a part of that effort. McKinley, it's ownership, it's Board, along with itsmanagement team, developed a comprehensive plan that will eventually migrate McKinley's owned asset platform to become essentially an all Multifamily enterprise. McKinley will continue ownership of select commercial assets including its corporate campus in the Kerrytown District in Downtown Ann Arbor, it's retail holdings in Pittsfield Township, Michigan where it is the largest Multifamily owner/operator, and its trophy office holdings in Akron, Ohio. McKinley will also continue its ownership of a very high quality Triple Net portfolio located throughout Central Florida. Finally, McKinley continues its Institutional Commercial Client Services effort which manages over 5 million square feet of office and retail assets for select institutional clients including complex receiverships, workouts and long term management.
"Our team has done a superb job migrating our owned asset platform to essentially an all Multifamily enterprise. At our current growth rate, our owned portfolio will approach 20,000 units by 2020 in Florida, Michigan, Illinois, Indiana and Georgia, along with another 5,000 units we operate for a select blue chip list of long term oriented institutional partners we have done business with for many years. We have decided to focus our talent and capital on what we do best, operating Multifamily assets on an extraordinary basis, and with a high degree of customer satisfaction" added Berriz.
August 11, 2017
McKinley Companies has announced the sale of two of its properties in Ann Arbor for $50 million to a Michigan investment company. To Read More CLICK HERE
July 12, 2017
McKinley Institutional Commercial Real Estate Team is pleased to announce the disposition of Westwood Square in Lake Forest, Illinois. McKinley was appointed Receiver for this shopping center on October 03, 2016. This 29,150 square foot center is home to tenants such as Westwood Bistro, Shelley Patenaude Interiors, and Jade Foot Spa. During its short time as Receiver, McKinley helped create value and stabilize the rent roll by filling two vacancies with new tenants and renewing two existing tenants. The team also remedied multiple city and fire code violations and significant deferred maintenance including active roof leaks, exterior lighting repairs, exterior power washing, and painting of the interior common areas and underground garage. McKinley further improved the asset by upgrading the inadequate lighting in the underground parking garage to energy efficient fixtures as well as crack filling, seal-coating, and striping the weathered surface parking lot.
"Upon accepting this assignment, McKinley was immediately able to remedy long standing issues and create value by stabilizing the property as well as bringing new tenants in to provide services to this quaint community," offered Jessica Furlong, Director of Operations for McKinley's Institutional Commercial Real Estate Team.
"This is another example of McKinley delivering a quality management experience for an important third party client. We take our role of creating value for our partners seriously. In this case, we quickly took over a distressed asset, certified a rent roll, completed a detail physical due diligence, cured immediate needs, and set this asset on a positive spiral of a turn around," offered Trey (Royal) Caswell, Senior Vice President & Managing Director - Institutional Real Estate.
June 28, 2017
It is was great pride and excitement that McKinley share with you this wonderful news about the Neutral Zone (NZ). We have been a core supporter of this marvelous organization from the start, and we are so proud of this amazing accomplishment:
ANN ARBOR, MI. - The Neutral Zone, a diverse youth-driven teen center located in Ann Arbor, was selected by the Community Foundation for Southeast Michigan as the recipient of the 2017 Richard F. Huegli Award for Program Excellence. The award was presented at the Community Foundation’s Board of Trustees meeting on Tuesday, June 27.
The Award annually recognizes a nonprofit that reflects Mr. Huegli’s vision of high standards in human services programming and belief in human potential. Huegli served in the human services sector in southeast Michigan for nearly half a century before his death in 1988. He helped to establish the Community Foundation and worked as acting director in its first year. Previous winners include the Arab Community Center for Economic and Social Services, HAVEN, the Rose Hill Center, and United Methodist Retirement Communities.
The Neutral Zone was founded by teens and adults in 1998 as a concert venue to provide a safe, supportive space for teens on Saturday nights. Today, the organization has grown exponentially to supporting weekend concerts and special events, as well as an after-school drop in space with over 20 programs in visual and media arts, music performance and technology, literary arts, community leadership, and education. During the school year, approximately 350 teens visit weekly, 200 participate in summer programming, and another 500 young people visit through school and community partnership projects during the school day.
Over the past decade, Neutral Zone has been recognized locally, regionally, and nationally as a high-quality youth development organization in delivering distinctly effective programming focused on engaging youth in meaningful decision-making, mentorship, and leadership. Neutral Zone is proud to have supported over 60 organizations, schools, and community health based centers to increase their youth-driven practices and are excited to continue efforts that engage young people to have student voice, build restorative communities and lead artistic and community based initiatives.
“It is an absolute honor to be awarded the Richard F. Huegli Award for Program Excellence,” says Lori Roddy, Executive Director of Neutral Zone. “Being chosen for this award reaffirms our work in the community and the unique partnership between the Community Foundation and Neutral Zone.”
June 27, 2017
McKinley is proud to announce that it has received the prestigious 2017 National CIGNA Well Being Award. This honor recognizes companies with a remarkable quality and excellence in health awareness. McKinley was honored with this award Tuesday, June 27, 2017 at MidAmerica Club in Chicago, Illinois.
“It is an honor to receive this prestigious award and I feel so fortunate to be surrounded and supported by such an amazing team who all contribute to making McKinley Healthy Living the world class program that it is today,” stated Meredith Mitchell, Health and Wellness Director. “The most important thing we do is connect with people and by connecting with them we have the opportunity to help them make healthy lifestyle changes they can adopt and maintain! I'm so thankful for the opportunity and to be a part of this world class team,” added Mitchell.
“It's an incredible achievement for our team to receive this honor from Cigna. Cigna is a wonderful partner for us in the employee benefits arena,” shared David Peabody, Senior Vice President & Managing Director - HR Services & Risk Management. “I'm very proud of the commitment to health and wellness from all of our McKinley team members that made this possible and continue to be amazed by the passion and innovation Meredith brings that consistently pushes everyone to excellence,” stated Peabody.
June 16, 2017
McKinley is pleased to announce that it has closed on a $6,500,000 long-term financing with Fannie Mae (FNMA) for Sun Pointe Lake Apartments, a 96-unit market rate Multifamily community located in Daytona Beach, Florida. This continues the on-going effort of locking in over $1.25 Billion in long term financings with maturities ranging from 10 to 35 years on McKinley's Multifamily platform located in Michigan, Indiana, Illinois, Georgia and Florida. Berkadia, Berkshire Hathaway and Leucadia National company, originated the financing on behalf of McKinley. Berkadia’s long-term relationship with McKinley spans several decades, and within the last 5 years it has executed on over $1 Billion of Multifamily long-term mortgages on behalf of McKinley via HUD, Fannie Mae and Freddie Mac.
"We continue our long-term refinancing efforts in this most favorable interest rate environment. We have now closed on almost all of our Multifamily debt at historically low interest rates, the majority of which is locked up for 35 years. As interest rates continue to rise, this very favorable debt platform will be highly accretive to our long term generational asset values," offered Albert M. Berriz, McKinley's CEO, Managing Member and Co-Owner. "We have been and will continue to be very disciplined in this effort, and that financial discipline along with extraordinary asset performance, has combined to build a fortress balance sheet position for our enterprise now and into the future," added Berriz.
McKinley is proud to be a major employer and owner of Multifamily and Retail real estate throughout Central Florida, having actively invested in the region since 1982. As one of the largest owners of Multifamily real estate throughout Central Florida, McKinley is committed to the future and well-being of the region, its customers that provide us the opportunity to serve their housing needs, and its 500 amazing Central Florida based team members who make it happen every day. McKinley currently owns a portfolio of 57 multifamily communities in seven major Central Florida sub-markets including the Orlando Theme Park market, the Orlando Airport market, Winter Park, Daytona Beach, Gainesville, Pinellas County which includes Clearwater, South Pasadena, North Redington Beach and Gulfport, and Tampa/Hyde Park/South Tampa. McKinley operates in the Central Florida Region under its flagship McKinley workforce housing brand, as well as its luxury brands which include McKinley Beach on the Barrier Islands of Pinellas County and McKinley Hyde Park in Hyde Park/South Tampa.
June 1, 2017
McKinley is pleased to announce the promotion of David A. Peabody, Esq., to Senior Vice President & Managing Director - HR Services & Risk Management. In his new role he will lead all Risk Management efforts in addition to his core HR and other risk management duties.
David has been with McKinley since 2005. He is an alumnus of the University of Michigan, Western Michigan University’s Thomas M. Cooley Law School, and the Harvard Business School. He is also an active member of the American Bar Association; the American Bar Association Section on Labor and Employment Law; the State Bar of Michigan sections on Labor and Employment Law and Workers’ Compensation Law; the University of Michigan Letterwinners M Club; the University of Michigan Alumni Association; the Harvard University Alumni Association; and the Harvard Business School Club of Michigan.
"David and I have been working side by side for a number of years. He will be a tremendous success in this new role due to his intellect, passion for our core values, and the tremendous respect he has garnered both internally and with our clients," offered Albert M. Berriz, McKinley's CEO, Co-Owner and Managing Member. “As the 2017 Hurricane Season starts today through November 30th, we are confident in David’s ability to lead our team and keep our people as well as our communities safe. We have an amazing team across the country that comes together each year to prepare and implement one of the most effective and sophisticated hurricane preparedness efforts in the real estate industry,” added Berriz.
“I’m excited for this opportunity to lead our risk management team and as we enter hurricane season, am currently focused on working with our operational leaders to maintain McKinley’s exceptional preparedness and awareness program for our communities in potentially affected areas,” shared Peabody.