The Springdale Apartments in Waukesha have been sold to a Janesville-based property manager, according to state real estate transaction records posted this week.
The apartment complex, which consists of 199 units across a number of buildings, is located at 2401 Springdale Road, at the southeast corner of Bluemound and Springdale roads.
An affiliate of Janseville-based Spaulding Group acquired the property, which expands 13.8 acres, from affiliates of West Allis-based Trike Property Management for $18.7 million. The land and buildings are assessed at $15.68 million, according to city assessment records.
Justin Spaulding, president and chief executive of Spaulding Group, said his company will be making updates to the buildings over the next two years. The work will be mostly cosmetic, and will take place in the common areas and 50 to 60 of the residential dwellings. It will include things like new paint and installation of new appliances.
Spaulding said his firm has sold off part of its portfolio of apartments and storage units this year, but with this purchase it will again be managing 500 apartment units total. Other properties it owns and manages are located in Janesville, Madison, Waukesha and Delavan.
He said Spaulding Group was attracted to the property in large part due to its location.
"The location of it being on the corner of Springdale and Bluemound, right off the interstate," he said, "(is) a very desirable location to be right now in multi-family."
The Springdale Apartments are also located near other multi-family buildings, residential neighborhoods and major retailers, including Menards and Blain's Farm & Fleet.
The apartments are almost fully occupied. Spaulding plans to increase rental rates of the apartments, which he said are currently priced below market. The increases will be placed on the vacant apartments. He said as units become vacant they will be refreshed and rented at the higher price point.
Spaulding said the units will be priced between $925 for one-bedroom units, up to about $1,350 for three-bedroom units. That includes everything except electric.
Michael Askotzky, owner of Trike, said his firm had no specific reason for selling the apartment complex. However, now is a good time to sell, he said, because the business cycle for multi-family is at its peak.
"We felt there's not a lot of supply out there, and there's a lot of demand," he said. "It's a timing issue."
Other than residential properties, Trike also owns medical office, industrial and retail properties, Askotzky said.