Twin Cities Apartment Advisors
William J. Cullen and Robert L. Colwell have over 30 years of experience in the Minnesota Multi-Family business. Our experience, database of active Buyers and hard work assure that Multi-Family property owners get the most money for their asset while protecting their on-site staff and residents from Buyer inquiries.
Studio apartments have gone upscale and are proliferating in the Twin Cities
Rents are on the rise, but apartments are getting smaller. Much, much smaller. Developers are
building hundreds of "micro" apartments in the most coveted neighborhoods in the Twin Cities.
Only a little bigger than a on-car garage, the units are aimed at renters who care more about
location than the size of their living area.
Twin Cities Rental Market Remains Tight
Despite a glut of developements hitting the market in the last few years, few units remain unrented.
The Twin Cities rental market is red hot and doesn’t show any signs of cooling down soon. A report
by Marquette Advisors said the average vacancy rate fell to 2.5 percent during the third quarter,
down from 2.9 percent in the second quarter.
Apartment property sales are skyrocketing in the Twin Cities metropolitan area. Will affordable
rental units disappear? Click here to learn more in the Minnesota Housing Partnership's recent
Affordable Housing Report
In sale, White Bear Lake apartment complex appreciates $6M in 18 months.
A deal by Bloomington-based Timberland Partners to buy a White Bear Lake apartment
complex shows that the market for multifamily properties is still humming.
New Twin Cities Development is Leaving Lower-Income Renters Behind
When a new owner purchased the Crossroads at Penn, a 698-unit, moderately priced apartment
complex just south of Minneapolis, it could have been a good thing for the complex’s 2,300
residents. The new owner made upgrades to the property, added amenities and rebranded the
Crossroads as the Concierge. But with those upgrades came a rent increase of 40 percent.
Twin Cities' luxury apartment boom
Brenda Sandberg has not rented an apartment in more than 25 years. "I had a home for many
years and there came a point where I realized I was ready to downsize," said Sandberg, a
second grade teacher and lifelong Minnesotan. This summer, Sandberg sold her home in
Brooklyn Park and moved just up the street to 610 West--the city's first market-rate apartment
complex in more than 20 years.
Despite apartment building boom, it's still a landlord's market
Several years into an apartment construction boom, it’s still a landlord’s market across the
Twin Cities metro. Throughout the 13-county Twin Cities metro the average apartment vacancy
rate during the second quarter was 2.7 percent — virtually unchanged from last year and the
fifth year that vacancies have remained below 3 percent, according to the Twin Cities office of
NAI Everest, a national commercial real estate firm.
Minnetonka Apartments fetch $45 Million in Sale
Heartland Realty Advisors has paid $44.9 million for the Woodlands at Minnetonka, a 252-unit
apartment complex. Finance & Commerce reports on the deal between Minneapolis-based
Heartland and Triology Real Estate Group of Chicago. Trilogy had paid $30.3 million for the
Woodlands just five years ago, a sign that demand for apartment properties remains strong in
the Twin Cities.
Twin Cities Metro Area Multi-Family Market Overview
What is happening in the Twin Cities market in 2016? Click here to learn more about what is
occurring in the market as presented by William Cullen, Professional Investor's Agent,
and John Prebarich, Mortgage Broker.
A turn nears in the building frenzy of Twin Cities apartments
Finding an apartment is still difficult in many parts of the Twin Cities but, with new ones being built
Obama Admin: Landlords Can't Refuse to House Crimimals
at breakneck speed, that’s beginning to change.For the first time in more than five years, the average
vacancy rate in the Twin Cities metro topped 3 percent, according to a first-quarter report Marquette
Advisors. And while that is still far short of the 5 percent mark at which the market is considered
balanced, developers are about to tap the brakes after delivering a near-record number of new rentals
The Obama administration released a warning Monday telling the nation’s landlords that it may
be discriminatory for them to refuse to rent to those with criminal records. The Fair Housing Act
doesn’t include criminals as a protected class, but the Department of Housing and Urban
Development (HUD) says refusing to rent based on a criminal record is a form of racial discrimination,
due to racial imbalances in the U.S. justice system.
Excelsior & Grand, an apartment and retail property in St. Louis Park, sells for record $97.5M
Excelsior & Grand, an upscale development with apartments, restaurants and retail in St. Louis Park,
has been sold at a record price for a suburban apartment project. On Thursday, Dayton, Ohio-based
Connor Group paid Told Development $97.5 million for 337 apartments and 64,000 square feet of
first-floor retail at a bustling intersection near the border of the first-ring suburb and Minneapolis.
Twin Cities property outlook
A flurry of year-end reports recaps Twin Cities real estate in 2015 while highlighting shifts that
will shape the market in 2016.
Target will open store in Uptown - on Cheapo's Music spot
Target is opening a store in the heart of Uptown, anchoring a new building with apartments and
offices on the bustling site........CPM Development, a Minneapolis real estate developer that
specializes in the Uptown and University of Minnesota areas, is putting together the $40 million,
six-story project. It will have one floor of office space and 125 apartment units.
Three high-profile Minneapolis projects advance
The Minneapolis Planning Commission on Monday cleared the way for three prominent projects to
proceed in downtown, Uptown and Prospect Park.Two of the developers, Ryan Cos. US Inc. and
Graves Hospitality, are well-known in the Twin Cities market, and the third is a Kansas-based
student apartment developer.
Employment gains drive Twin Cities' apartment market
Why is the multifamily market such a hot one in the Twin Cities? Marcus & Millichap points to the
jobs market here. According to the company’s most recent apartment research, the abundance of
employment opportunities is attracting job seekers to the Minneapolis/St. Paul area.
Minnesota cities with the highest and fastest-rising rents
Rents are climbing faster in Eden Prairie than any other Minnesota city, according to new data from
an apartment listing website.
Upscale apartment makeover forces hundreds to move in RIchfield
When Ralph “Gil” Gilbertsen retired from his job as a Wal-Mart greeter three years ago, he moved into
the Crossroads apartments in Richfield. One of the largest apartment complexes in Minnesota, with
700 units, the Crossroads was inexpensive and convenient to bus lines......But Gilbertsen, along with
hundreds of other residents, will have to find a new home. The Crossroads has been sold to a
developer who’s spending millions of dollars to bring it upmarket.
Latest city home inspections roil, worry landlords in Seward
In June, landlord Chris Micek got a notice from the city about a new tiered inspections process for his
duplex in the Seward neighborhood. The letter notified Micek that his property was in Tier 1, meaning
he was among 85 percent of landlords who were doing things right. The letter thanked Micek for
keeping his property up, saying owners like him were “the cornerstone of a healthy and safe
neighborhood.” But as the inspector, Joe Jarvis, made his way around Micek’s duplex, it became clear
“it was going to be trouble for me.”
Richfield apartment complex sells for $41M
One of the largest apartment complexes in the Twin Cities traded hands this week in a $41 million
sale to a Wisconsin real estate investor. Eden Prairie-based TE Miller Development sold the
698-unit Crossroads at Penn complex in Richfield to an affiliate of MLG Capital, according to a
certificate of real estate value made public Wednesday. Brooklyn Center-based Soderberg
Apartment Specialists partnered with MLG on the deal.
Biggest apartment rent increases are in outstate Minnesota
Rising apartment rents aren't just an urban phenomenon. The ten counties with the steepest
rent increases are all in outstate Minnesota, according to a report on the state of the rental market
in Minnesota released Tuesday morning by the Minnesota Housing Partnership.
More apartments will rise on 494 strip
A Nebraska-based apartment developer is jumping into the Twin Cities market with a 179-unit project
near Normandale Lake in Bloomington.Commercial Investment Properties (CIP), based in Lincoln,
has proposed a five-story market-rate apartment project at 5650 American Blvd. W. near Normandale
Lake and within the Norman Pointe Office Park. In 2001, the site was slated to be developed into a
10-story office tower by landowner Duke Realty, based in Indianapolis.
Twin Cities Metro Area Multi-Family Market Overview
What is the current state of the Twin Cities Rental Market? Is the increase in Apartment Building
values a bubble or is it justified? View this presentation for answers to these questions
and more. William Cullen, WilliamRobert Apartment Brokers, and John Prebarich, Chase
Commercial Lending, highlight what is going on in new construction, occupancy trends, rental
rates, and the financial market to paint a picture of what is coming in the year ahead for the Twin
Cities multi-family market.
Landlord spends "crazy" amount on Uptown apartment portfolio
Uptown landlord Hornig Cos. outbid nearly a dozen rivals to snap up seven buildings in the popular
Minneapolis neighborhood. And it paid big for the privilege.
Why the Twin Cities is tops in the Midwest for rental property investors
Out-of-town investors are expected to invest a near-record amount of money in Twin Cities rental
properties this year. Here's why.
Apartment giant Weidner to set up regional office in Twin Cities
Weidner, a fast-growing Seattle real estate firm, is making a full-throttle commitment to the Twin
Cities. After four recent apartment acquisitions, the company bought a Minnetonka office building
that will become the company’s Midwest regional headquarters.
Eden Prairie's rent up 6 percent for 2 bedroom units
Eden Prairie and Minneapolis have the fastest growing rents in the Twin Cities metro based on 2
bedroom units, according to a recent report from Apartment List. "Twin Cities rents have soared
over the last 4 months including a same-unit increase of 1.1 percent between March and April.
Across the metro, the average rent for a 2 bedroom is now $1,140, which is 14 percent above the
national average of $1,000," said Max Rosett, Apartment List data scientist.
Developer is greenlights by St. Louis Park and Golden Valley, secures land for new West
The 14 acres of vacant land at the southwest corner of I-394 and Highway 100 next to the
West End retail center has three new owners. Florida-based DLC Residential made headlines
in November by proposing a multiphase, multi-building complex immediately adjacent to one
of St. Louis Park's most successful development zones.
Minneapolis population climbs to 411,286 in 2014
The city’s population reached 411,286 in 2014, according to preliminary estimates released Monday
by the Metropolitan Council. The population has grown 7.5 percent from 2010 — a faster growth
rate than the Twin Cities region as a whole. Overall, the seven-county metro area’s population is
2,977,445 — a 4.5 percent increase from 2010. The number of households grew by 47,282 and the
number of housing units by 34,982.
St. Paul's time to shine
In the Twin Cities, Minneapolis gets the lion’s share of public and media attention...... St. Paul and
the east metro have drawn less notice. While the office vacancy rate in downtown St. Paul remains
high, there’s fresh optimism on many fronts. Several hotel projects are being planned, which would
mark the first new hotel rooms in downtown St. Paul in decades.
Construction booming, but apartments hard to find
From his office in downtown Minneapolis, Brent Wittenberg can see the region's apartment boom
take shape just by looking out of his 13th floor window. The Nic on Fifth, a 253-unit luxury apartment
building a block away reportedly sold for more than $100 million last fall just after residents moved in
— an unheard of figure in Twin Cities residential real estate. Another luxury tower — dubbed 4Marq —
is under construction on the same block.
Apartment construction booms in Twin Cities suburbs after decades-long drought
Several new market-rate apartment complexes are in the works, reversing a decades-old trend
in which single-family home construction has driven growth.Brooklyn Park City Council Member
Peter Crema once campaigned on a “no new apartments” pledge, citing the nuisance and
crime problems linked to some of the aging cookie-cutter apartments already peppering the city.
Out-of-state investors targeting Minneapolis/St. Paul apartment market
Scott Streiff picked up this interesting bit of information while attending the 2015 National
Multifamily Housing Council Apartment Strategies Outlook Conference in Palm Springs: A
growing number of national and international investors are targeting the Twin Cities’ apartment
market. And this is making it more difficult for local investors to sink their dollars into the new
and existing apartment developments in the Minneapolis/St. Paul market.
Condos are a Hot Commidity in Twin Cities Real Estate
Condos are a hot commodity in Twin Cities real estate according to fresh press releases by
the Minneapolis Area Association of Realtors. An expert in Twin Cities real estate matters,
Home Destination elaborates on the current Twin Cities housing reports why condos are such
a large share of new construction.
As apartment building surges in the Twin Cities, so does demand
The vacancy rate for apartments fell from July to September, surprising the real estate community.
Three years into an apartment building boom in the Twin Cities, there’s still not enough.
Young professionals, empty nesters and those burned by the housing crash are fueling
unprecedented demand for apartments and the carefree lifestyle that comes with them, making
the Twin Cities one of the hottest rental markets in the nation.
Suffering is a good sign for rental developers
It’s not a healthy apartment market until somebody is in some financial pain.This might not be
the textbook definition in neoclassical economics, but it sure is a good way to think about this
famously cyclical business.
Two more residential towers planned for downtown Mpls.
Inspired by early success at downtown Minneapolis’ Nic on Fifth, Opus has its sights set on two
more a block away. As the cocktails flowed and a band played poolside at last week’s opening
of the Nic on Fifth apartments in downtown Minneapolis, the developers who built the 26-story
luxury complex looked out on the next place they’d like to do something — one block north.
Metro apartment vacancies stable, while rents rise
Nearly 2,000 new apartments hit the market in the Twin Cities metro area so far this year, and
there were plenty of renters to fill them. The average vacancy rate in the 13-county region during
the second quarter was 2.7 percent, up only slightly from 2.6 percent in the first quarter and 2.3
percent a year ago, according to new data from Marquette Advisors Wednesday. This is a follow
up article to the one posted below.
2,000 new apartments in the Twin Cities not enough to stoke vacancy rates
Nearly 2,000 new apartments hit the market in the Twin Cities metro so far this year, but there were
plenty of renters to fill those spaces. The average vacancy rate in the metro during the second quarter
was 2.7 percent compared with 2.6 percent during the previous quarter and 2.3 percent last year,
according to a second-quarter report from Marquette Advisors.
Lee Schafer: High rents reflect shift in living patterns
The William apartment in the new Nic on Fifth building is what’s called an alcove, meaning it’s a bit
more than a studio but doesn’t really have a bedroom, either. One of the units, in a gleaming downtown
Minneapolis tower nearing its grand opening, will cost “from $1,395” a month. Under the rough
standard of no more than 30 percent of income for rent, it would take a $56,000 annual salary to afford
to live there.
Apartments Rents Rise as Incomes Stagnate
Apartment landlords continued to push through hefty rent hikes in the second quarter, squeezing U.S.
households that already are struggling financially after four years of steady increases. The average
monthly rent for an apartment rose to $1,099 in the second quarter, up 0.8% from the first quarter,
according to data to be released Wednesday by real-estate research firm Reis Inc. That was the
18th consecutive quarter of rent increases. For the 12-month period ended in June, rents rose 3.4%.
As New Apartments Pop Up in Mpls, Vacancy Rate Doubles
It seems like everywhere you look downtown, a new condo or apartment building is popping up.
But now, the vacancy rate is going up, too.Minneapolis-based Marquette Advisors reported the
vacancy rate for apartments in downtown Minneapolis at 5 percent at the end of March. That’s up
from the 2.2 percent vacancy rate at the end of March from last year.
More renters receiving federal help get squeezed out of apartments
Angela LaCluir’s deadline to find a new apartment was approaching and, after more than two
months of searching, she was worried. LaCluir, 59, is one of more than 250 residents for Nicollet
Ridge Apartments in Burnsville who have been scrambling to find new homes because the
property's new owner - an investment business based in Phiadelphia - will no longer take renters
who use the Section 8 rent subsidy program.
Average monthly rent in the Twin Cities breaks $1000
More than 1,000 new apartments hit the market in the in the Twin Cities during the first quarter,
but the average vacancy rate increased only slightly to 2.7 percent, according to a new Twin
Cities Metro Area TRENDS report from Marquette Advisors. Here's a snapshot of what's happening
around the region during the first quarter:
Loring Park-area apartments sell for $30.8 million
The Vue Apartments project, the crux of a long, bitter fight between Minneapolis and developer
Brad Hoyt, has been sold as Hoyt's Continental Property Group sells off its area holdings. Finance
& Commerce reports that the 119-unit complex, at 415 Oak Grove St near Minneapolis' Loring Park,
was sold by Wayzata-based Continental to Weidner Apartment Homes for $30.8 million
Apartment Vacancy Climbs Again in Downtown Minneapolis
The downtown Minneapolis vacancy rate ticket up while more large projects are in the pipelne.
The vacancy rate for apartments in downtown Minneapolis has more than doubled in the last
year amid the local building boom for rental projects. Minneapolis-based Marquette Advisors
reported the vacancy rate for apartments in downtown Minneapolis at 5 percent at the end of
March, up from the 2.2 percent vacancy rate at the end of March 2013.
Owning a home can be not a great investment
Every May, I set out on my tasks of converting our house to summer use. And every May, I
have the same vendors on speed dial.....t’s time to look at homeownership to decide how
good a deal it is. Here is the conclusion that I will share with you: While there are many great
reasons to become a homeowner, it may not be the best financial decision.
Edina approves Lennar's $65M apartments on Richfield border after modifications
The Edina City Council on Tuesday approved Lennar Multifamily Investors' $65 million
apartment proposed on York Avenue near Southdale Center, over the objection of Richfield
residents who showed up at Edina's council chambers.
University-area landlords say luxury apartment boom pushes neighborhood fixes
While the luxury apartment complexes popping up around the University of Minnesota give
students more housing options, off-campus property owners are confident they can compete
with the new development. Landlords say they haven’t seen a significant impact on their
business due to the new buildings yet, but they expect them to affect the surrounding market
— and neighborhoods — in the future.
National apartment vacancy hits 12-year iow
The growth being seen in the nation’s apartment market saw little signs of slowing during the
first quarter of 2014, as vacancy fell and rental rates rose. According to data released by
REIS, Inc. last week, U.S. apartment vacancy fell to 4 percent, which is the lowest level since
the third quarter of 2001 when vacancy was 3.9 percent. Vacancy was down from 4.4 percent
in the fourth quarter of 2013.
Burnsville Complexes with 588 apartments sell, get new name
Philadelphia-based Equus Capital Partners bought, renamed and plans to improve two
Burnsville apartment complexes with a combined 588 units. Equus said it will spend $4.5
million to improve the 348-unit Atrium Apartments (renamed Madison Atrium) and the
240-unit Trailway Pond Apartments (renamed Madison Trailway).
Apartments in the Twin Cities can't go up fast enough
Twin Cities apartment developers are filling units nearly as fast they can build them.
Although more than 3,000 new apartments were built in the metro area over the past year,
the average vacancy rate barely budged, ending the year at just 2.5 percent, with average
monthly rent rising 2.5 percent to $981, according to Marquette Advisors.
Eagan building to become apartments
The tallest office building in Dakota County is about to get a major makeover. A Twin Cities
developer plans to convert the 10-story Waterview Office Tower in Eagan into 112 rental
apartments called City Vue Commons. The conversion by Interstate Partners received
preliminary approval this week and is part of a much larger mixed-use development that
will have a second phase...
Wealthy Americans pick real estate as best investments for 2014
Millionaires across the U.S. say commercial and residential real estate is the best alternative-
asset investment option for 2014. One-third of millionaires surveyed in a new Morgan Stanley
study plan to purchase real estate this year, Bloomberg reports. And 23 percent say they'll
invest in real estate investment trusts.
Twin Cities apartment developers offer ammenities for Fido
One way developers are attracting dog-owning residents is by rolling out Fido-friendly
amenities, including indoor potty spots with “canine turf,” spa-style dog washes with
easy-access walk-up ramps, grooming stations, heated runs and pet-minded concierge services.
Other buildings are contemplating activities such as doggy yoga and Olympics.
Lyndale-Franklin could get apartments, theater
A developer plans a big makeover for the intersection of Lyndale and Franklin avenues
in Minneapolis, proposing a six-story apartment building and theater.
Out-of-state investors zero in on Twin Cities real estate
Out-of-state real estate investors from Malaysia to Miami are spending billions on Twin Cities
apartment complexes and commercial buildings, including some of the most iconic office towers
on the downtown Minneapolis skyline. Even celebrity rainmakers like Chicago-based real estate
king Sam Zell are forking over big dollars for property in local ZIP codes.
Minneapolis reports record $1.2B in construction projects
Minneapolis issued 12,100 construction building permits in 2013, which had a combined value of
$1.21 billion, a new annual record for the city. This is the second year in a row the city has seen
more than $1 billion in construction approved, up from $1.12 billion in 2012. In 2011, construction
projects were valued at the below average total of $752 million, which was up from a huge drop in
2010, when the projects were valued at just over half a million dollars.
Apartment Vacancy Rate declined to 4.1% in Q4 2013; Expected to increase slightly in 2014
Reis reported that the apartment vacancy rate declined in Q4 to 4.1% from 4.2% in Q3.
In Q4 2012 (a year ago) the vacancy rate was at 4.6%, and the rate peaked at 8.0% at the end
Carlson plans apartments on provate Minnetonka island
Carlson Real Estate Co. plans to sell a wooded 12-acre private island next to its Minnetonka
headquarters to Trammell Crow Co. for a new apartment complex. Carlson is helping plan
five-story, 175-unit luxury apartment tower that Trammell Crow Co.'s High Street Residential
subsidiary will develop.
Financing still flowing for apartments
Financing has been plentiful for new apartment projects, and that stream of capital
shows no signs of slowing any time soon. The supply of capital for apartment deals
is nearly as free-flowing as it was at the peak of the real estate market in 2005 and 2006.
“There is certainly a ton of liquidity in the market across the board,” said Doug Seylar, a
senior vice president and managing director at CBRE Capital Markets in Minneapolis.
Landlords can get tougher on tenants under new law
Gov. Scott Walker has signed into law a Republican-sponsored bill that gives landlords more
power over tenants. Walker signed the bill privately Thursday. It allows landlords to dispose of
any property an evicted tenant leaves behind, immediately tow parked vehicles and toss tenants
out if a crime occurs on the property and the tenant was in a position to prevent it.
Landscape expands for artist housing
The stereotype of the poor, starving artist living in a dump may soon be out of fashion.
In fact, it's a good time to be an artist looking for affordable living space in the Twin Cities.
20-Somethings Emerging From Their Parents' Basement Will Keep American Apartment
Despite some signs of overbuilding, America's apartment rental market will remain robust as
20-somethings begin to move out of their parents' homes, Wells Fargo's Anika Kahn wrtites in
a new note. Since the recession, there's actually been a substantial boom in in multi-family
housing starts. The surge didn't emerge out of nowhere: Khan says demand has moved at a
"breakneck" pace since 2010, fueled by tighter lending standards for home loans and slowly
recovering household formation.
Twin Cities rentals fill fast, and rents keep rising
Though hundreds of apartments have hit the market - creating plenty of supply - rents are going
nowhere but up. The average rent arcoss the metro area rose 3.5 percent to $984 during the
third quarter, according to a report released Monday by Marequette Advisors
Apartment Sale is metro's largest in two years
The 361-unit Stoneleigh at the Reserve Apartments in Plymouth sold for $53 Million last week.
It was the largest apartment transaction in the Minneapolis-St. Paul area in the past two years.
Inside View: Ted Bigos, Bigos Management
Minneapolis native Ted Bigos started buying and fixing up rundown apartment
buildings during college. Forty years later his Golden Valley-based Bigos Management -
with 42 properties and 8000 units - is one of the largest apartment owners in the Twin Cities.
Trendy local apartment projects get highlighted in New York Times story
A recent New York Times story highlights the state of the national real estate market by
looking to Minneapolis. The city's trendy North Loop neighborhood has seen plenty of
development in the last year, with new apartments filling up fast.
Booming market drives up rents and squeezes out renters
The apartment boom underway in the Twin Cities is adding thousands of rentals across the
metro area, from lavish lofts to trendy units inspired by feng shui. Only problem is, many
people can’t afford them.
Twin Cities rental housing market tightens
The market for rental housing in the Twin Cities in the second quarter of the year was even
tighter than it was a year ago, according to data compiled by Marquette Advisors on behalf
of the Minnesota housing partnership.
It's Business-as-Usual in Minneapolis Apartments
The latest apartment performance stats in Minneapolis-St. Paul look a lot like the long-term
historical norms. That’s both good news and bad news. The good news is that Minneapolis
apartments are jam-packed full. Occupancy here registered at 97.6%.
MBA's second quarter commercial/multifamily delinquency rates report
Today Mortgage Bankers Association released their second quarter commercial/multifamily
delinquency rates report. The report shows that delinquency rates for commercial and multifamily
mortgage loans declined in the second quarter of 2013. Commercial and multifamily
loan performance continued to improve during the second quarter, with delinquency rates falling
for every major investor group. The quarterly decline in the delinquency rate of loans held in
commercial mortgage-backed securities (CMBS) was the largest on record, and delinquency
rates for loans held by life companies and the GSEs remain low and fell lower during the quarter.
MBA's Commercial/Multifamily Delinquency Rates report is available for download, at
MBA's web site.
Despite a barrage of new apartments, demand continues to outstrip new supply
Depite a barrage of new apartments in the Twin Cities metro, renters still don't have the
upper-hand. A new report from Marquette Advisors shows that the average vacancy rate
in the 13-county metro fell 50 basis points to 2.3 percent, causing rents to increase 3 percent to
$979. The represents the largest quarterly decline in vacancy in two years and the ninth
consecutive quarter with vacancy rates below 3 percent.
Big Upscale Apartment Project Underway in Maple Grove
A Florida-based developer has broken ground on the first phase of Skye at Arbor Lakes,
a large luxury apartment project in Maple Grove. The project’s first phase calls for 263
upscale apartments. Altamonte Springs, Florida-based LeCesse Development Corporation
is developing the project with Pittsford, New York-based Morgan Management, LLC, and
the first units will be available next summer.
No rental bubble in Twin Cities - yet
Despite a barrage of new apartment buildings in the Twin Cities metro area, demand
for rentals continues to outstrip supply. The average vacancy rate in the seven-county
area dipped to 2.3 percent at the end of June, causing the average metro rent price to
increase 3 percent to $979, according to a second-quarter survey by Marquette Advisors.
That was the largest quarterly decline in vacancy rates in two years, and the ninth
consecutive quarter of vacancy rates below 3 percent.
How long can the apartment construction boom continue?
The real estate appraisal firm Nicollet Partners in Minneapolis tracks new and proposed
apartment projects in the Twin Cities, and as of last week its pipeline report showed more
than 7,000 units under construction and an additional 13,600 units proposed. “And I’m
sure we are maybe missing some,” said Doug Wageman, a principal with the firm. Usually
when you see that much activity in any segment of the real estate market, a famously cyclical
industry, you know what’s coming next.
Finance and Commerce Article
Four investors who bought a pair of Richfield apartment buildings 13 years ago have sold them
to an investor from Dallas for $885,000. DDTS Properties LLC, an entity named for the initials of
the four private investors, sold the two eight-unit buildings at 7040 and 7108 Cedar Ave. S. to
Regan Real Estate LLC, an investor from Dallas. “They bought it when they were young, but now
they’re married and have kids and different jobs,” said Robert Colwell, a partner in William Robert
Twin Cities Apartment Advisors in Edina. They simply didn’t have time to manage the properties,
said Colwell, who has known one of the investors for years and represented the group in the sale,
which closed July 31.
Southdale address could attract not just shoppers, but residents, too
A novel groundbreaking for a new luxury apartment complex occurred last week in the shadow
of a Cheesecake Factory. Sure, there were the usual fancy shovels perched atop a ceremonial
pile of dirt, surrounded by beaming real estate developers and city officials. But the site itself, at
the corner of W. 69th Street and York Avenue S., has never been developed -- even though its
Edina location is one of the most attractive commercial spots in the Twin Cities. That's because
it sits squarely in Southdale's parking lot.
Strong rental market brings wave of renovations
With a Wi-Fi lounge, up-to-date fitness center and apartment units with expresso-finished
cabinets, The Woods of Burnsville might seem like one of hte new rental complexes springing
up around the Twin Cities.
n reality, it’s a 1980s-era property undergoing an ambitious
makeover — one of a growing number of obsolete rentals upgraded to satisfy the demand for
trendy apartments that has spread to the suburbs.
A June construction boom in Minneapolis
Growing consumer confidence. Bigger incomes. They're the kind of things making life pretty
sweet for Twin Cities homebuilders.
Housing construction so far this year is up 23 percent
from the same period in 2012, putting builders on track for their best year since 2007. During
June alone, 496 permits were issued to build 912 units, the Builders Association of the Twin
Cities (BATC) reported.
Twin Cities home builders on track to have best year since 2007
With six months to go, Twin Cities home builders are on track to have their best year since
2007, offering more evidence that consumers have the confidence- and income - to spend on
expensive houses and upscale apartments. That's according to a new report released this
morning by the Builders Association of the Twin Cities, which shows that sousing construction so
far the year is 23 percent ahead of last year, and home buyers aren’t shy about how much they’re
Bad Minneapolis landlord gone, but not all of the problems
The properties' new owner said he's on top of the repair needs, but some tenants are still
complaining. Six months after Minnespolis pressured one of it's worst landlords to sell 38
apartment buildings, city inspectors report a dramatic drop in tenant complaints and
Developer Proposes Four-Story Apartment Complex, Shops in Cedar Grove
Stonebridge Companies wants to build a four-story retail and apartment complex near the
soon-to-be-built outlet mall in Cedar Grove. The dust has barely settled on the groundbreaking
for the new Paragon outlet mall, and already Eagan city officials are weighing a significant
proposal from another developer. On Tuesday, the Eagan Economic Development Authority
voted to enter into negotiations to sell a 4.8-acre parcel near the outlet mall site to Stonebridge
Companies, a Twin Cities-based developer specializing in multi-family housing complexes.
Twin Cities Luxury Apartments in Demand
High-end apartments are popping up all around the metro. In fact, there are four luxury buildings
in St. Louis Park alone that are opening this month - and it seems they're filling up fast, reports Aristea Brady.
Trammell Crow picks Doran Construction to build Junction Flats
A Dallas-based developer has picked Twin Cities-area contractor Doran Construction to build
Junction Flats, the six-story, 182-unit apartment development on Fifth Street just north of Target
Field in Minneapolis.
Southcross Village Townhomes Trades for $5.1M
KES Holdings LLC acquired the 60-unit Southcross Village Townhomes at 14800 County Road 5
in Burnsville, MN for $5,125,000, or about $85,000 per unit. William Cullen of WilliamRobert
represented the seller, Roseville Properties Management Company.
Trammel Crow to build luxury apartments in Golden Valley
A Dallas-based developer said it plans to build more than 160 luxury apartments in Golden Valley,
a small suburb along the northwest edge of
. That’s in addition to plans for another
600 or so units in Golden Valley.
165 Luxury apartments coming to Golden Valley
Dallas-based Trammell Crow Co. said this morning that it plans to begin construction this fall on
165 luxury apartments in Golden Valley. The Arcata will built on a 2-acre site near The Shops at
West End. It'll be adjacent to the Colonnade Office Tower and south of Golden Hills Office Center
on Golden Hills Drive.
St. Louis Park's luxury apartment building spree worries some city officials
Since 2011, nearly 900 luxury apartment units have been built in St. Louis Park, prompting
some city officials to raise concerns about maintaining an affordable and diverse housing stock.
“The variety of housing being offered has been very narrow,” said City Council Member Anne
Mavity. “The issue of affordability is huge. Most of the rent price points that we have been seeing
are on the high end, and I want to make sure that we have affordability so folks working in regular
middle-class jobs can afford to live in our community and in these newer developments.”
Twin Cities rental demand still strong despite new apartments
Hundreds of new apartments in the Twin Cities have yet to put a dent in the demand for
rentals. The dip in vacancies comes despite the addition of 620 new apartments - mostly
in Minneapolis' trendiest neighborhoods - and rents that have steadily crept higher in the
Twin Cities Housing Construction up 111 percent in April
Housing construction in the Twin Cities was up more than 110 percent, making it one of the
busiest Aprils in nearly a decade. Throughout the 13-county metro area, builders were issued
372 permits to build 817 apartments and single-family houses, according to a report from the
Builders Association of the Twin Cities.
New apartments barley putting a dent in Twin Cities vacancy rates, and rents are on the rise
Hundreds of new apartments have been built in the Twin Cities, but that hasn't put a dent in the
average vacancy rate in the region. Just-released first quarter data shows that the average
vacancy rate in the metro was 2.8% compared with 2.9% during the previous quarter, according to Marquette Advisors.
Forget Buying a Single Family Home: Purchase an Apartment Complex
From is small rented apartment in New Yor City's East Village, former advertising executive,
Joe Fairless is in the final stages of closing on a $6.8 million apartment building in Ohio. Real
estate investors like Fairless are kicking single-family homes to the curb in today's housing
market to purchase apartments in areas with low vacancy rates.
Building Permits Bloom in April
Despite the long winter and rising costs, the Twin Cities home building market is wraping up its
busiest April since April 2007. Minneapolis accounts for half of the planned housing units in April,
a reflection of two apartment projects under construction: Opus Development Co's. 253-unit Nic
on Fifth project at 415 Nicollet Mall, and the 137-unit Solhavn development at 815 Second St N.
in the North Loop area of downtown.
Townhouses planned for 49th and Vernon in Edina
Minneapolis-based Hunt Associates has received preliminary approvals to tear down a pair
of small, 1950's apartment buildings and an adjacent single-family house near Hwy 100
replacing them with 16 attached townhouse units. Robert L. Colwell, now with WilliamRobert,
represented the seller in this townhome project and brought in Hunt Associates as the developer.
Second glory for downtown's Pioneer-Endicott buildings?
While investors cooled their heels during the recession, Richard Pakonen and Clint Blaiser
were flying to Chicago to buy the better part of a St. Paul block they feared was wasting away.
For months the pair begged a property owner mired in litigation to sell them St. Paul's first
skyscraper, a condemned parking ramp and two adjoining downtown properties.
Totino's Italian Kitchen in Minneapolis to be replaced by Apartments
The northeast Minneapolis restaurant where the queen of frozen pizza made her fortune will
soon become the city's latest rental apartments. For decades, families packed into big red
vinyl booths and slurped noodles over checkered tablecloths in a northeast Minneapolis
restaurant where Rose and Jim Totino pumped out millions of meatballs before selling their
frozen pizza company to Pillsbury for $22 million.
Apartment vacancy rate declined to 4.3% in Q1 2013
Reis reported that the apartment vacancy rate fell to 4.3% in Q1, down from 4.5% in
Q4 2012. The vacancy rate was at 5.0% in Q1 2012 and peaked at 8.0% at the end of
Apartment vacancy rate falls to lowest level since 2001
The U.S. apartment vacancy rate fell to it's lowest level in more than a decade, but
persistent stagnant income growth for U.S. workers has tempered the ability of landlords
to raise rents, according to an industry report.
Downtown Minneapolis office finds new life as apartments
With an oversupply of office space and a shortage of apartments, downtown developers are
setting their sights on converting office buildings into living space. For decades the stately Soo
Line building - once headquarters to Soo Line Railroad and US Bank - dominated the
Minneapolis skyline. Old age hasn't been kind to the 98-year-old tower.
The Talented Mr. Perez: How Obama's Labor nominee muscled a city to drop a Supreme
President Obama nominated Thomas Perez on Monday to run the Labor Department, praising
him as "a consensus-builder" who passed the nation's "first statewide living-wage law" in
Maryland. That isn't his only talent. Consider how he worked behind the scenes to undermine two
civil cases against the City of St. Paul in order to stop a Supreme Court case that might have
repudiated his discrimination enforcement theories.
New North Minneapolis apartment construction in need of better design
Last week at the Jordan housing committee meeting, CommonBond Communities presented
their design proposal for the apartment building to be constructed at the West Broadway curve.
Dowtown St. Paul post office deal reached; developer plans 250 apartments
Developer Jim Stolpestad has signed a purchase agreement for the 17-story central post
office building on Kellogg Boulevard in downtown St. Paul, with the goal of the building
at least 250 units of market-rate apartments overlooking the Mississippi River.
Apartment Tower planned for near First Avenue nightclub is 'on hold'
Turnstone Group has suspended its plans to build a nine-story apartment tower called
The Venue, which was slated to be built near the First Avenue nightclub. It is blaming a
run-up in construction costs.
I-394 Strip in Golden Valley becomes hotbed for apartment development
The "power strip" along Interstate 394 between Hwy 100 and I-494 in Golden Valley is not
only proving to be a top draw for office users, it's also becoming one of the hottest spots in
the Twin Cities for apartment development.
Apartments Snapped up as Fast as They're Built
Apartments in the Twin Cities are filling up as fast as they are becoming available, sparking
a new wave of rental development unlike anything the metro has seen in decades.
Twin Cities Metro Area Multi-Family Market Overview
Where will you take your rental property business in 2013? View this presentation to get some
solid information to use in your planning. William Cullen, WilliamRobert, and John Prebarich,
Chase Commercial Lending, highlight what is going on in new construction, occupancy trends,
rental rates, the financial market, and even worldwide politics to paint a picture of what is coming
in the year ahead for the Twin Cities multi-family market.
Frenz buys Minneapolis apartment portfolio from controversial investor Zorbalas
Apartment owner Steve Frenz is recapitalized and starting to fix some of the most notorious
apartment buildings in Minneapolis.
Pro One Management Pays $15.8M for Burningham Apartments
Pro One Management acquired the Burningham Apartments at 1501-1513 Burnsville Pkwy E. in
Burnsville, MN from Johnson Management Co. for $15.8 million, or about $49,000 per unit. The
WilliamRobert team represented both the buyer and the seller in the sale.
Saint Paul Apartment Tower Fetches $51 million
Kellog Square, a signature apartment tower in downtown St. Paul has been sold for $51 Million,
a sign of confidence that the market for downtown apartments in the Twin Cities will remain strong.
Apartment Vacancy Rate Declined to 4.5% in Q4
Reis reported that the apartment vacancy rate fell to 4.5% in Q4, down from 4.7% in Q3 2012.
The vacancy rate was at 5.2% in Q4 2011 and peaked at 8.0% at the end of 2009.
Just Sold: Mint Properties goes on apartment-buying spree
In a Finance and Commerce article Jim Rubin, owner of Minneapolis-based Mint Properties LLC,
has acquired 11 buildings in the last month. The acquisitions include nine buildings in Minneapolis
and two in St. Paul, totaling 183 units. The transactions involved about a half-dozen different
owners with different reasons for selling according to Dan Largen, property manager for the
company. The buyer and seller of one of the St. Paul properties, located at 1210 and 1233 Randolph Ave., was represented by WilliamRobert.