Dive Brief:

• Northland has entered Wisconsin with the acquisition of Preserve West, a 318-unit, garden-style apartment complex in Madison.
• In February, Newton, Massachusetts-based Northland arrived in the Midwest with the acquisition of SoRoc on Maine in Rochester, Minnesota. Preserve West, formerly known as ReNew 78 West, is the company’s second purchase in the region. It is the firm’s ninth acquisition in the past seven months.
• Preserve West spans 20 acres and 17 two- and three-story buildings with underground parking. The community’s amenities include a clubhouse, fitness center, co-working space and communal kitchen. In addition, the property is within walking distance of several grocery stores and a mall. 

Dive Insight:

Northland owns more than 26,000 units in 14 states spanning New England and the Midwest, Southwest and Southeast. The company ranked No. 47 with 25,519 units on the most recent National Multifamily Housing Council Top 50 owners list, which accounted for apartments owned at the end of 2021.

The city of Madison holds a unique appeal to Northland, Mike Campbell, Northland’s vice president of investments, said in a press release. 

“Madison fosters a business-friendly environment conducive to economic growth through access to public capital and a strong pipeline of young professionals,” he said. “Preserve West is an ideal addition to Northland’s growing portfolio, offering uniquely large floor plans in a supply-constrained pocket of Madison.”

Even though investors traditionally seek properties on the coasts and in the Southeast, it isn’t easy to find assets in the Midwest. “Through last year, the competition was pretty aggressive everywhere — even in the Midwest,” Campbell told Multifamily Dive. “One of the things that we found as we started to look through the Midwest was that many buyers who were either coastal buyers or who used to invest either in the Southeast, Southwest or Mountain states were getting priced out of those areas and starting to look toward the Midwestern states.”

Northland, like many companies, has also been eyeing metros in the Southeast, with a focus on Georgia. Since 2020, it has acquired 1,300 apartments totaling $270 million and $250 million in land for future development in the state. 

Atlanta “has a tremendous story with varying industries growing there at a rapid pace since the global financial crisis, a diverse economy, a diverse population and the continued inward migration from nearby states and other high-cost jurisdictions,” Campbell told Multifamily Dive. “It has set itself apart as one of the top destinations in the Southeast.”

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