Douglas Terrace, a 202-unit garden-style apartment community on Racine’s Douglas Avenue, has changed hands for $23 million, shifting control from a Milwaukee-area owner to an out-of-state private capital group based in Illinois. The deal, reported Wednesday, lands in the middle of a tighter borrowing climate yet still signals steady investor appetite for well-located, mid-market apartment properties across the Midwest.
Deal details and financing
According to Northmarq, the firm completed the $23 million sale and lined up roughly $18.265 million in permanent financing through its in-house Fannie Mae DUS platform. Northmarq reports that it represented seller MLG Capital LLC and that the buyer is “a private capital group from Illinois.” The loan is structured on a seven-year term with four years of interest-only payments.
Seller, buyer and the asset
The transaction was first reported by the Milwaukee Business Journal on April 1. MLG Capital’s property listing for Douglas Terrace describes the complex as a 202-unit, Class B garden community that opened in 1966 and has been marketed with unit renovations and a dog park. Local officials and tenants have not yet issued statements about any plans from the new owners.
What the sale could mean for Racine renters
Northmarq notes that Douglas Terrace underwent renovations in 2020 and has historically posted occupancy above 97 percent. Units feature amenities such as stainless appliances and patios or balconies, while the shared grounds offer a pool and playground. Industry analysts say demand for workforce and mid-market multifamily housing is attracting capital nationwide, a trend discussed in reporting from Multifamily Executive. Rents and management decisions under the new ownership will determine whether the property sees further upgrades or operational changes that affect current residents.
