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Multifamily is back in the spotlight this week with four older apartment properties listed by Michel Commercial Real Estate in St. Paul and Richfield. Michel is offering the three Richfield properties — owned by the original developer’s property management company for going on 60 years — separately or as a portfolio.
Groveland Terrace Apartments
Groveland Terrace Apartments is a 2.5-story building with 12 one-bed, one-bath units and six two-bed, one-bath units. The one-beds rent for $1,047, on average, and the two-beds for $1,255, for a property-wide average of $1,116.
But given Groveland Terrace’s exceptional condition for a 1960 build and its location on a leafy stretch of Grand Avenue in St. Paul’s desirable Macalester-Groveland neighborhood, listing broker Heidi Addo believes there’s plenty of room to grow.
“It’s not just the location but who the ownership has been,” she said. “Whenever [At Home Apartments sells], buyers have full confidence that they’re getting a well-maintained property in great condition.”
Michel’s financial analysis shows average comparable property rents at $1,219 for one-bed units and $1,429 for two-bedroom units, for an average premium of nearly $200. Its future targeted rents for Groveland Terrace are a bit more conservative at $1,131 for the one-beds and $1,355 for the two-beds. That’s partly due to St. Paul’s anemic rent growth rates, Addo said.
Still, Groveland Terrace has plenty to recommend it: an “elevated common area,” simple but clean decor, a new boiler, and parking spaces out back — just shy of one per unit — that the new owner could potentially begin charging for, Addo said.
And despite its location less than a mile and a half from three higher-education institutions with around 10,000 undergraduates between them, Groveland Terrace is not a magnet for students, Addo said — which may come as a relief for prospective buyers leery of renting to a younger, rowdier crowd. Most current tenants are younger professionals drawn by the convenient location, below-market rents, and off-street parking.
“Off-street parking is a hugely desirable component for the residents who live here” given the neighborhood’s housing density, Addo said.
Address: 1787 Grand Ave, St. Paul
Type: Multifamily
Square Footage: 11,256 square feet
Asking Price: Not disclosed
Tax Value: $2.02 million (2024)
Seller: Grand Avenue ASMC, LLC (St. Paul)
Listing Broker: Michel Commercial Real Estate
Highland Management Group apartment portfolio, Richfield
It’s rare for any multifamily community to remain with the same owner for going on 60 years. It’s even rarer when that owner is the original developer, and rarer still when said owner-developer offers up three at once.
But that’s what’s on the table along Richfield’s bustling Interstate 494 corridor, where Highland Management Group is offloading a three-property, 236-unit apartment and townhome portfolio valued at well over $20 million, per Hennepin County tax records.
Highland is open to selling the properties — New Orleans Court, Richland Court, and Winton House — on an individual basis as well, listing broker Heidi Addo said. But because their proximity to one another makes for more cost-effective management, the portfolio option is enticing, she added.
Highland is selling the properties so it can “level up” into newer multifamily stock elsewhere in the Twin Cities, but Addo cautions against reading too much into its motivations.
“[Units in] these properties have been moving super well for them,” she said, noting the central location, strong local employment base, and easy freeway access. “The workforce housing segment is really strong [in Richfield and] they do not have a problem with occupancy.”
The average rent across the portfolio is $1,265, about $100 less than the submarket average of $1,363, according to the offering memorandum. “Light capital improvements” like fresh paint, new lighting, and luxury vinyl plank flooring instead of carpet could be enough for a new owner to get there, Addo said.
New Orleans Court Apartments & Townhomes
Address: 50 78th St. W., Richfield
Type: Multifamily
Square Footage: 2.42 acres (site)
Asking Price: Not disclosed
Tax Value: $8.63 million (2024)
Seller: Highland Management Group
Listing Broker: Michel Commercial Real Estate
Richland Court Apartments
Address: 1300-1324 78th St. E., Richfield
Type: Multifamily
Square Footage: 3.28 acres (site)
Asking Price: Not disclosed
Tax Value: $10.73 million (2024)
Seller: Highland Management Group
Listing Broker: Michel Commercial Real Estate
Winton House
Address: 7500 and 7544 Cedar Ave., Richfield
Type: Multifamily
Square Footage: 1.64 acres (site)
Asking Price: Not disclosed
Tax Value: $4.73 million (2024)
Seller: Highland Management Group
Listing Broker: Michel Commercial Real Estate
[Entire Portfolio]
Address: 50 W. 78th St., 1300-1324 E. 78th St., and 7500 and 7544 Cedar Ave., Richfield
Type: Multifamily
Square Footage: 7.34 acres (3 sites)
Asking Price: Not disclosed
Tax Value: $24.09 million (2024)
Seller: Highland Management Group
Listing Broker: Michel Commercial Real Estate
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