German developer buys historic New Center apartment complex for $2.6 million
Optima Seward LLC, a subsidiary of Munich-based Optima Aegidius Group, made the deal late last month for the historic 34-unit complex at 127 Seward St., said James Tumey, vice president at Farmington Hills-based Friedman Real Estate, which brokered the deal.
The seller was Doug Hixson, who owns several other residential properties in the city, according to Midtown Detroit Inc.’s website, which lists the buildings’ rental information.
Tumey said he expects the investment to continue there as property values creep up in tandem with refilled storefronts and a more walkable landscape. The strip on Woodward between Baltimore Avenue and East Grand Boulevard is one to watch in the coming months.
“New Center has taken on its own little identity,” he said.
Seward Plaza Apartments is fully occupied with rental units priced between $645 to $745, according to the Midtown Detroit website. Tumey said nobody will be kicked out following the deal, and improvements will be made in the next couple years as tenants move out. He said he did not know how rental rates would be affected. After a large-scale investment, such as the one to purchase and renovate this complex, rents often increase.