MINNEAPOLIS-Waterton Residential, an affiliate of Chicago-based Waterton Associates LLC, has purchased the 26-story Symphony Place Apartments at 1117 Marquette Ave. The 250-unit, 225,462-sf high rise was built in 1983 and averages 95% occupied, says a Waterton official.
The property was purchased from Colorado-based Archstone-Smith Trust. Waterton purchased Symphony Place through Waterton Residential Property Fund IX, a $330-million discretionary investment fund targeting value-added multifamily properties, said Waterton in a statement.
The company also recently purchased two properties in Chicago; 1 E. Delaware Place in Chicago, a 36-story apartment complex from Archstone in the city's Gold Coast neighborhood at the corner of North State Street and East Delaware Street, and the 399-unit River North Park Apartments in Chicago in May 2006 from Archstone. Waterton executives would not divulge the purchase price for any of the three complexes, but tells GlobeSt.com that the two buys were less than the $150 million quoted in other sources. Symphony Place was bought in 1999 for $28 million.
Rick Wise, an EVP with Waterton, says the Minneapolis purchase was a dynamic buy because of its proximity to development and highway access, as well as a shrinking market. "There's a lot of redevelopment in different neighborhoods in downtown," Wise tells GlobeSt.com. "The city is really creating a live-work environment. Also, there's been a lot of condo conversions, a lot of rental apartments have been removed from the market. It's created a tight market, that's why the property has such high occupancy." The building is also near planned entertainment centers and retail, including Lunds and Whole Foods grocery stores. The tower gets its name from Orchestra Hall located across the street.
The Symphony property has units averaging 902 sf, with an average $1,400 rental rate, Wise says. "It was built in the 1980s and has never been renovated or updated," he says. Waterton will spend about $2 million to renovate common areas, including lobbies, interior hallways and unit interiors, with upgraded cabinets, countertops, appliances, lighting and flooring.
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