Monarch Investment & Management Group, a Denver-area apartment ownership and management company, has added The Depot, a 624-bed student housing complex in downtown Akron, to its holdings.
Monarch has The Depot, at 80 E. Exchange St., listed in its portfolio on its website as of Monday afternoon, July 18. Summit County records do not yet show a transfer for the award.
However, Sean Baird, a Colliers International agent who specializes in student accommodation and who ran an online auction on the Ten-X auction site for the property in April, confirmed the sale was completed during a a phone call on Friday July 15th.
CoStar, the online data source, also flagged the June transaction in its online property listing on July 18. CoStar announced that the 2004 student housing complex sold for $20.8 million.
Monarch, which has more than 70,000 suites in the United States, is not a newcomer to the northeast Ohio multifamily market.
A 2022 ranking of area multi-family owners by the Cleveland office of Colliers International indicated that there were a total of 1,288 suites here. The company owns apartment buildings in the area from Sandusky to Bedford. (Monarch’s portfolio in the region ranked 18th in size, according to Colliers, before the latest transaction.)
The Depot has had a difficult history. The property was controlled by Rialto Capital Management, a Miami-based company that serves as an asset manager for distressed commercial real estate loans, in this case one of several loans in a secured mortgage bond guarantee RSS CSAIL2015-C2 -OH EH LLC.
Rialto had held the property for the lender since it was recovered to satisfy an $18 million mortgage on June 2, 2020, after a sheriff’s sale order by the Summit County Court of Common Pleas.
Summit County court records show the property went into litigation in 2018 after the lender declared a technical default. Indeed, the previous owner had entered into a tax payment plan following the resolution of a dispute over the valuation of the property which the lender claimed violated his mortgage. The previous owner did not prevail; the court ruled for the lender.
The structure, originally developed by a subsidiary of Cleveland-based national apartment developer NRP Group, consists of more than 200 units with a common kitchen and living room shared by two or three bedrooms with individual bathrooms. . It sits above its own parking lot. The Depot takes its name from its downtown site that previously housed the Akron Beacon Journal’s newspaper storage and sorting facility.
Purpose-built student housing has been on its own roller coaster during the COVID-19 outbreak, which has forced many colleges and universities to close for various periods in 2020.
Monarch did not respond to an email and four phone messages until 1:40 p.m. Monday. Property managers on site at the Depot declined to comment on the current property.