Commercial real estate broker Marcus & Millichap has completed the sale of Sturgis Crossings, a 42-unit residential asset in Saint Johns, Michigan. Subsidiary firm Marcus & Millichap Capital Corporation (MMCC) arranged the acquisition funding to support the local purchaser.

The residential complex is situated at 900 E. Sturgis St. on a 2.80-acre plot north of the Lansing metropolitan area, offering transport links via U.S. Highway 127. Built in 1984, the property covers 29,770 rentable square feet and comprises a combination of one- and two-bedroom flats.

Investment specialists Chase Gilewski and Chris Futo from Marcus & Millichap’s Detroit office held the exclusive listing on behalf of the out-of-state seller and identified the local buyer. The purchaser completed the transaction as part of a 1031 tax-deferred exchange.

“This transaction required a true team effort as we helped our client successfully complete a 1031 exchange while representing the seller,” said Chase Gilewski, Director, Investments. “With ongoing hands-on management, opportunities to complete additional unit renovations and strong rental demand driven by the property’s proximity to the Lansing metro area, the asset is well positioned for long-term growth.”

Acquisition financing was secured by Luke Lamoreaux, associate director at the firm’s Detroit office, through a national credit union. The financial structure consists of a 10-year loan term with a 6.3% interest rate, a 25-year amortisation schedule and six months of interest-only payments. MMCC locked in the rate at application roughly 60 days before the transaction closed.

“The interest-only period will allow for a smooth and comfortable transition for the buyer and his management team,” said Lamoreaux. “We also locked the interest rate at application approximately 60 days before closing, which enabled us to execute successfully in a rising interest rate environment.”