MINNEAPOLIS—Affiliates of Equus Capital Partners, Ltd., a private equity real estate fund manager, just acquired a two-property multifamily portfolio in suburban Minneapolis from Henderson Global Investors. The communities, known as Atrium Apartments and Trailway Pond Apartments, total 588 units and were 95% occupied at the time of closing. Madison Apartment Group, LP, an operating arm of Equus, will manage the communities.
The terms of the transaction was not disclosed, but Equus officials say that over the coming months they will invest more than $4.5 million to improve both communities including a comprehensive rebranding program, improvements and updates to the community amenities, common area hallway renovations and apartment interior upgrades.
“The transaction provided us with the opportunity to acquire two well-located multifamily communities in Burnsville, a desirable suburb of Minneapolis,” says Brant Glomb, the vice president of Equus who oversaw the acquisition. This is the firm’s first multifamily investment in the metropolitan area. It also owns and operates the 920,000-square-foot Metropoint office complex in St. Louis Park, as well as the 540,000-square-foot Grand Oak office park in Eagan.
“We continue to expand our national presence by investing in those markets with favorable supply/demand fundamentals,” says Steve Pogarsky, head of multifamily acquisitions, and will continue seeking additions to its nationwide multifamily portfolio.
Atrium Apartments has 348 units in a garden-style community. Equus has renamed the development Madison Atrium. It includes a mixture of one and two bedroom apartments that sit within four buildings each atop a heated underground parking garage. Just four miles away, Trailway Pond Apartments has 240 units and also includes a mixture of one and two bedroom apartments. Equus changed its name from Trailway Pond to Madison Trailway.
The acquisition of this two property multifamily portfolio was made on behalf of BPG Investment Partnership IX, LP, Equus’ $310 million private equity fund.