Pillar Properties, Inc. – a $100M REIT co-founded by Larry Gotcher and Curtis Philpot – is already targeting Detroit multifamily. But the real signal for investors is what’s happening on Ann Arbor’s perimeter, and why the spillover is just getting started.
Ann Arbor, Michigan has a well-earned reputation as one of the most stable real estate markets in the country. It’s also, increasingly, pricing people out.
University of Michigan students are renting in Ypsilanti rather than Ann Arbor and commuting to campus. Renters who might have stayed in the city are moving to Saline, Chelsea, and Dexter to save $1,000 or more per month. In some cases, demand has pushed prices in adjacent cities – including Dexter, which sits right next to Ann Arbor – above Ann Arbor itself.
Larry Gotcher, owner and broker of Resource Realty Group and co-founder of Pillar Properties, Inc. – a REIT structured to raise up to $100 million annually, formed with partner Curtis Philpot – is watching this closely. His recommendation for investors who can’t access Ann Arbor pricing: look at Washtenaw County.
“Anywhere in Washtenaw County – the school districts are really strong, and there are no major catastrophes,” Gotcher says.
Gotcher’s case for Washtenaw County goes beyond proximity to Ann Arbor. Michigan, and Washtenaw County specifically, draws families because of strong school districts and a lack of the natural disaster risk that affects coastal and other Midwestern markets – no hurricanes, no tornadoes, no earthquakes. That’s a durable draw for long-term residents who make for stable tenants and buyers.
For investors seeking a higher immediate return than Ann Arbor typically allows, the surrounding cities offer what the core market increasingly cannot: entry-level pricing with room for appreciation, driven by the same demand that has saturated Ann Arbor itself. Purchase prices can run $200,000 to $300,000 less than comparable Ann Arbor properties – enough margin for both cash flow and long-term gains.
The same affordability pressure visible in Washtenaw County is also driving larger deals across the state. Through Pillar Properties, Inc., Gotcher is targeting 500 apartment units in Detroit, with large residential apartment complexes as the primary focus. In a market where a traditional home in Southeast Michigan costs $500,000 or more, renters are a growing, durable population.
He’s also expanding a manufactured housing community about two and a half hours north of Ann Arbor. The property sits on 65 acres, currently operating 49 lots across 15 acres, with room for several hundred more. A brand-new two-to-three-bedroom manufactured home runs around $75,000, offering residents a form of homeownership at a fraction of traditional costs. Residents own their homes and rent the land.
“It’s kind of a step between an apartment and a house,” Gotcher says.
The most common reason investors are sitting out in 2026 is interest rate anxiety. Andrea Gotcher, who co-owns Resource Realty Group, has a clear counter: the market won’t wait.
“Interest rates eventually will come down, but your market values will not,” she says. “The savings you would have saved by waiting for your interest rates to drop is just going to be eaten up by the increase in property value.”
The math is straightforward. Waiting a year for rates to drop a point means paying more for the same property – likely more than the rate savings would have been worth. For investors watching the Michigan market, the spillover cities around Ann Arbor offer lower entry prices, strong rental demand, and appreciation driven by the same forces that have made Ann Arbor itself so expensive.
Larry Gotcher is the owner and broker of Resource Realty Group, a commercial and residential real estate brokerage in Ann Arbor, Michigan. Licensed since 1991, Gotcher was a founding partner of Keller Williams Ann Arbor in 1998 and spent nearly 20 years there while simultaneously operating a mortgage company with 7 net branches. He co-founded Pillar Properties, Inc. – a REIT structured to raise up to more than $100M/year for income-producing real estate across Michigan and nationally – with partner Curtis Philpot.
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