Michigan – portfolio of single family homes

In 2012, when the decision was made to purchase property in the metropolitan area of Detroit, the city of Detroit was a classic example of urban decay. At the same time, the suburbs surrounding Detroit have directly benefited from this decay. Detroit is the largest city in Michigan, but the population in the city has declined by 25% in the last 10 years to approximately 700,000 people. Even so, it is still the 18th most populous city in the US. There were nearly 2 million people in the city of Detroit in 1950, but this number has steadily declined decade after decade as the city has experienced a flight to the suburbs. The assumption was that residents of the city of Detroit would continue to seek to escape the city for larger homes in better, safer areas with better school systems in the surrounding suburbs of the metropolitan area. This theory has played out in reality and we have seen substantial home price appreciation as well as an increase in rents in the metropolitan area of Detroit in which Futureal, under the Cordia USA brand, purchased 100 single family homes, renovated, rented and managed them with its joint venture partner. These homes were recently sold for a gross sales price in excess of $7 million.