Investors Seek Out Multi-Family Gems
- Aug 20, 2015
Investors are showing renewed interest in Greater Minnesota’s hidden multifamily gems. Marcus & Millichap’s Minneapolis office recently arranged the sale of two apartment communities totaling 108 units in Cloquet and Bemidji for close to $5 million.
Marcus & Millichap investment specialists Cole Harstad, Mox Gunderson and Dan Linnell had the exclusive listing.
“Throughout the past two years, we have seen capital migration from the East and West Coasts flooding the Twin Cities market and pushing down yield,” said Harstad in a statement. “This has caused private capital to pursue assets in these secondary and tertiary markets.”
The properties were built in the 1960s and 1970s and have historically high occupancy. The 72-unit community in Cloquet attracted seven offers and sold for more than $3.2 million to a Twin Cities investor. The price equates to $44,513 per unit.
Bristlecone Manor, a 36-unit apartment community in Bemidji, sold for more than $1.3 million. The community is located at 2510 Irvine Ave. NW.
Images courtesy of Marcus & Millichap