MINNEAPOLIS—New York Life Real Estate Investors has just acquired Fountain Place Apartments, a 490-unit multifamily property in suburban Eden Prairie, another sign that institutional buyers have now set their sights on value-add opportunities in this vibrant market. The seller was TIAA Global Asset Management.
Officials from NYREI say they plan to upgrade the clubhouse, common areas and unit interiors. Built in 1987, the garden style apartment community contains a mix of one and two bedroom units. The property's on-site amenities include indoor and outdoor swimming pools, indoor racquetball and basketball courts, a 24-hour fitness center, tennis court, steam room and sauna.
The area's multifamily market has been hot recently, and especially popular with influential buyers. As reported in GlobeSt.com, for example, Investcorp just bought Southwind Village in Burnsville for $45.3 million from Virtu Investments, and Hampshire Hill in Bloomington for $68 million from a JV of Westdale Investment Partners and Westdale. Both properties traded at over 40% more than their previous sale prices within the past five years, according to Real Capital Analytics data.
The unemployment rate for the Minneapolis region fell to just 3.3% in April, one of the lowest rates for any major metropolitan area. And Eden Prairie has long been considered one of Minneapolis' most desirable suburbs. Interest in the area will probably grow after the extension of the Minneapolis-St. Paul Light Rail Transit System's Green Line to Eden Prairie.
“Fountain Place represents an excellent opportunity to invest in an attractive value-add asset in one of Minneapolis' premier multifamily submarkets,” says Brian Murphy, senior director at New York Life Real Estate Investors. “With significant capital budgeted to upgrade the clubhouse, common areas and unit interiors, Fountain Place will remain a desired location for residents seeking proximity to Eden Prairie schools, employers and retail amenities.”
MINNEAPOLIS—
Officials from NYREI say they plan to upgrade the clubhouse, common areas and unit interiors. Built in 1987, the garden style apartment community contains a mix of one and two bedroom units. The property's on-site amenities include indoor and outdoor swimming pools, indoor racquetball and basketball courts, a 24-hour fitness center, tennis court, steam room and sauna.
The area's multifamily market has been hot recently, and especially popular with influential buyers. As reported in GlobeSt.com, for example, Investcorp just bought Southwind Village in Burnsville for $45.3 million from Virtu Investments, and Hampshire Hill in Bloomington for $68 million from a JV of Westdale Investment Partners and Westdale. Both properties traded at over 40% more than their previous sale prices within the past five years, according to Real Capital Analytics data.
The unemployment rate for the Minneapolis region fell to just 3.3% in April, one of the lowest rates for any major metropolitan area. And Eden Prairie has long been considered one of Minneapolis' most desirable suburbs. Interest in the area will probably grow after the extension of the Minneapolis-St. Paul Light Rail Transit System's Green Line to Eden Prairie.
“Fountain Place represents an excellent opportunity to invest in an attractive value-add asset in one of Minneapolis' premier multifamily submarkets,” says Brian Murphy, senior director at
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