minneapolis-st. paul
www.colliersmsp.com
highlights> Demand, especially from national institutional buyers, exceeds supply.> There is strong demand and high sale prices for smaller properties in key urban areas, especially
Uptown. > City Limits in Minneapolis and Oakdale Village in Oakdale, two large, class C properties, were recently
sold by local investor Dominium. There is strong demand for these types of properties among national groups that are highly motivated to place capital in the Minneapolis-St. Paul market in an effort to chase yield.
> Construction is concentrated in urban markets such as the North Loop and Loring neighborhoods of Minneapolis, areas of St. Louis Park, and near the University of Minnesota.
> The University area market has close proximity to Minneapolis CBD populations in addition to strong demand from foreign and graduate students and employees of the University and area hospitals.
> Developers active in the market include those that plan to hold the investment for income property, and merchant developers, such as Opus, who plan to sell after completing construction.
> Vacancy levels are very low, but moderate rent growth is occurring given the few available units. In addition to the market not being a historically strong rent-growth market, the improving housing market and significant new construction has muted rent growth.
> Rising interest rates will put constraints on pricing and increase cap rates in addition to decreasing the prospective buyer pool.
> Employment growth is a key indicator of the health of the apartment market, and employment growth in the area remains steady.
> Minneapolis-St. Paul will remain a premier market with low vacancy rates and strong interest from national institutional and private equity groups in addition to strong local demand.
Q2 2013 | apartment
aPaRTMENT MaRkET REPORT
market indicators
Q2 2013
VacancY —
rents
transaction actiVitY
price per unit
cap rates
aVerage rent and VacancY monthlY emploYment trends
Strong Pricing in the Investment Market; Development Heats up; Interest Rates Put a Damper on Cap Rates
market report | Q2 2013 | apartment | minneapolis-st. paul
apartment sales units under construction
market report | Q2 2013 | apartment | minneapolis-st. paul
significant apartment sale actiVitY
Building address citY size (units) BuYer seller price price per
unitsale date
City Limits 127 E 59th St Minneapolis 198Monarch Investment and Management Group
Dominium $12,000,000 $60,606 Jun-13
Dellwood Estates apart-ments 749 E River Rd anoka 132 INREIT Properties
LLLPGregerson Melvin C & Myrna E $11,500,000 $87,121 Jun-13
Oakdale Village 1213 Gentry ave N Oakdale 175 Nationwide Housing Corp. Dominium $11,450,000 $65,429 May-13
Twin Lakes Manor 3305, 3413 53rd ave N
Brooklyn Center 310 Soderberg apart-
ment Specialists TCF Financial Corp $9,900,000 $31,935 apr-13
Rolling Hills 1325 Westminis-ter St St. Paul 108 Lutheran Social
ServicesRich Pakonen & Clint Blaiser $4,750,000 $43,981 Jun-13
Granite Peaks 3907-3911 65th ave N Minneapolis 54 Soderberg apart-
ment Specialists Fannie Mae $3,960,000 $73,333 May-13
525 Second St SE 525 Second St SE Osseo 40 Osseo aCQ LLC Osseo Investments LLC $2,400,000 $60,000 apr-13
Pinecrest apartments 5451 Fifth St NE Fridley 32 Mateer Properties Pinecrest apart-ments LLC $2,185,000 $68,281 apr-13
Humboldt apartments 508-510 Humboldt ave S St. Paul 82 Real Estate Equities amherst H. Wilder
Foundation $2,000,000 $24,390 May-13
The Cathedral Lofts 265 Dayton ave St. Paul 28 David a & Gary a Hornig
Elevate Property Management - The Bayard apartments
$1,950,000 $69,643 Jun-13
Como Park apartments 805-811 Como ave St. Paul 32 DRS Investment LLC at Home apart-ments $1,900,000 $59,375 Jun-13
2315 Colfax ave S 2315 Colfax ave S Minneapolis 24 at Home apart-ments
Towle Financial Services $1,656,000 $69,000 Jun-13
2100 Bryant ave S 2100 Bryant ave S Minneapolis 24 Gremar Properties LLC
David a & Barbara M Hornig $1,552,941 $64,706 May-13
1928 Emerson ave S 1928 Emerson ave S Minneapolis 13 Rent Inc. Eof Investments
LLC $1,465,000 $112,692 May-13
1425-1445 Bidwell St 1425-1445 Bidwell St West St. Paul 24 DRS Investment LLC HCP Properties, Inc. $1,350,000 $56,250 apr-13
2101 Hennepin ave 2101 Hennepin ave Minneapolis 11 Gremar Properties LLC
Gary and Sandra Hornig, David and Barbara Hornig
$1,300,000 $118,182 May-13
2730 Dupont ave S 2730 Dupont ave S Minneapolis 17 David a & Gary a Hornig
Baron Bradley J & Beverly EH $1,262,500 $74,265 May-13
2820 First ave S 2820 First ave S Minneapolis 23 Copenhagen-Hansen Family LLLP
2820 First avenue South LLC $995,000 $43,261 May-13
3701 Pleasant ave S 3701 Pleasant ave S Minneapolis 16 Christopher a &
Lauri B DolezalNagel Richard C & Jeanne M $922,059 $57,629 Jun-13
Six Thirty Nine apart-ments 639 23rd ave NE Minneapolis 18 639 23rd avenue
NE LLCPeterson Property Management LLC $900,000 $50,000 apr-13
Wabasha apartments 426 Wabasha St S St. Paul 21 Bushard Construc-tion Central Bank $895,000 $42,619 apr-13
846 Pierce Butler Route 846 Pierce Butler Route St. Paul 23 Dadders Properties
LLC Sunrise Banks $877,000 $38,130 apr-13
1338 Seventh St E 1338 Seventh St E St. Paul 17 american LLC Elisoph LLC $749,000 $44,059 May-13
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market report | Q4 2011 | office | minneapolis-st. paul