Central Park

Central Park Apartments is a 402-unit, Class-B garden-style multifamily community located in Okemos, Michigan, an affluent suburb approximately 10 minutes east of Michigan State University and downtown Lansing. Built between 1994 and 1997 across 20 buildings on 64.62 acres, the property offers a low-density, single-family feel paired with resort-style amenities that differentiate it from denser urban-style competitors. The community is 94% occupied with two consecutive years of 4%+ rent growth, and is being acquired through a limited partnership structure with an anticipated closing in August 2026.

Why This Opportunity

• Premier suburban location: Proximity to Highway 43 provides direct access to Michigan State University and downtown Lansing, the primary economic anchors of the Lansing MSA, supporting 94% occupancy and consistent rent growth.

• Recession-resistant demand base: The Lansing MSA economy is anchored by a "Feds, Eds, and Meds" workforce, with government representing 26.9% of the labor force, followed by trade/transportation/utilities at 15.4% and education/health services at 14.7%. MSA unemployment was 3.9% as of April 2026, below Michigan's 5.0% and the national 4.3%.

• Affluent, high-barrier submarket: Okemos carries a median household income of $103K, nearly double Lansing city's $54K, and is ranked the #1 "Best Place to Live in Michigan" with the #5 "Best Public Schools in Michigan" among 600+ locations by Niche.com.

• Renting is the cost-effective option: High local home values make renting materially cheaper than owning in the submarket, producing savings of over $1,000 per month and sustaining rental demand. The renter share of housing has grown from 36.2% to 38.4%, with 52% of housing renter-occupied within a 5-mile radius.

• Proven value-add runway: Prior ownership invested over $1.3 million since 2024 and renovated 62 units, with rent rolls confirming those units achieve rent premiums. The business plan expands that program with a more comprehensive upgrade package.

• Attractive in-place basis: At $174,627 per unit and a 6.75% going-in cap rate, the acquisition prices below the $182,674 per-unit weighted average and above the 5.6% average cap rate of recent regional comparables.

• Room to push rents: Central Park's $1.54 average rent PSF sits below four of its five direct competitors, indicating mark-to-market opportunity while preserving a discount to Class-A product.

• Operational upside through new management: Village Green, a Michigan-based national manager with 100+ years of experience and 70+ properties in the state, is being onboarded to improve operations, cut employee rent concessions from 1%+ of revenue toward 0.5%, and address the property's 3.6/5 Google rating.

• Economic momentum in the market: A $4.3 billion Tesla/LG Energy EV battery plant, an $800 million U-M Health Sparrow expansion, a $208 million Neogen campus investment, and a $500 million Spartan Stadium renovation are all underway in the region.

• Strong sponsor alignment: Buligo Capital and Graycliff Capital are expected to invest approximately 20% of required equity alongside limited partners.

• Projected returns: 16.8% IRR and 2.0x equity multiple over a 5-year hold, with ~8.3% average cash-on-cash and 8.0% in Year 1.

Deal Structure

• Purchase price: $70.2M ($175K per unit)

• Total capitalization: ~$75.6M (includes ~$3.18M closing costs and $2.25M upgrades/working capital)

• Debt: ~$49.1M (70% LTV) Freddie Mac loan, 7-year term, rate locked at 5.23% via buydown, monthly interest-only throughout the term

• Total cash equity: ~$26.5M

• Investor equity: ~$21.2M [assumes ~20% sponsor co-investment, confirm]

• Minimum investment: [needed from Buligo]

• Sponsor co-investment: Buligo Capital and Graycliff Capital investing ~20% of required equity alongside limited partners

• Going-in cap rate: 6.75% (6.32% adjusted for post-acquisition tax reassessment)

• Underwritten exit cap rate: 5.75%

• Partnership vehicle: Central Park Buligo LP (Delaware LP)

• Offering: 506(c) Reg D, accredited investors only

• Anticipated closing: August 2026

Promote Structure

• Carried interest: 25% above an 8% IRR to investors

• Fully back-ended with no catch-up: the sponsor participates in profits only after investors have received their preferred return

• Acquisition fee: 2.0% of purchase price

• Asset management fee: 1.0% per annum of equity

• Administration fee: $10,000 per annum

Business Plan

The investment targets stable cash flow from an already-performing asset, with upside driven by four levers:

• Unit renovations: A targeted 100 units over five years, executed as leases naturally turn to minimize downtime. The scope focuses on high-impact cosmetic upgrades including updated countertops, LVP flooring, and stainless-steel appliances, building on a renovation program that has already demonstrated rent premiums.

• Management transition: Village Green will take over day-to-day operations with initial objectives of reducing employee rent concessions from 1%+ of revenue toward 0.5% and improving resident satisfaction scores to support retention and leasing demand.

• Amenity monetization: Approximately 43% of residents are not currently enrolled in the property's amenity offerings, presenting a direct path to incremental ancillary income through an amenity modernization program.

• Potential PILOT tax program: Ownership is evaluating a PILOT structure that would reduce the real estate tax burden in exchange for designating a portion of units for households earning below 120% of AMI. Negotiations are expected to take 4-6 months with no certainty of approval, and the benefit is not included in underwriting.

Property Details

• Address: 5205 Madison Avenue, Okemos, MI 48864

• Year built: 1994-1997

• Units: 402

• Rentable area: 400,338 SF (996 SF average unit size)

• Buildings / stories: 20 buildings, 2 and 3 stories

• Land area: 64.62 acres

• Parking: 440 surface spaces, 384 carports, 60 attached garages

• Occupancy: 94%

• Unit mix: 72 one-bed/one-bath (738 SF), 144 two-bed/one-bath (880 SF), 168 two-bed/two-bath (1,172 SF), and 18 three-bed/two-bath (1,310 SF)

• Average in-place rent: $1,513 per unit ($1.54 PSF)

• Community amenities: Heated outdoor pool, fitness center, racquetball and volleyball courts, clubhouse, sauna, grilling station, and dog park

• Unit amenities: Washer and dryer, walk-in closets, electrical appliances, with attached one-car garages and gas fireplaces in select units

• Anticipated closing: August 2026

Competitive Context

Recent regional sale comparables support the acquisition basis. Seven comparable Michigan multifamily transactions closed at a weighted average of $182,674 per unit and a 5.6% cap rate, ranging from $153,125 to $226,923 per unit and 5.4% to 5.9% cap rates. Central Park's acquisition at $174,627 per unit and a 6.75% going-in cap rate prices below the per-unit average at a materially wider cap rate.

On rents, Central Park's $1,513 average monthly rent and $1.54 PSF sit below Club Meridian ($1,609 / $1.84 PSF), Knob Hill ($1,715 / $1.73 PSF), Meridian Meadows ($1,577 / $1.81 PSF), and Elevation Apartments ($2,099 / $1.96 PSF), supporting the mark-to-market thesis while retaining a value position relative to Class-A product.