Apartment complex near U of M sells for $58 million
A 194-unit student housing complex near the University of Minnesota in Minneapolis was recently sold for a little more than $58 million.
44 North apartments, located on 4th Street SE and 27th Avenue SE not far from University Avenue, was purchased by Chicago-based Harrison Street Real Estate Capital LLC, according to an electronic certificate of real estate value available Tuesday.
The deal closed Nov. 1 and the price works out to more than $300,000 per unit.
The seller was New York-based real estate investment group DRA Advisors LLC. In 2016, DRA purchased the apartments, which at the time were known as the Metro Park East Apartments. DRA paid $47.5 million for the apartments.
Currently, the three-building complex features a 24-hour study lounge with free printing and computer access, billiard and media lounge, stand-up tanning facility among other amenities.
There are one-bedroom, two-bedroom and four-bedroom layouts with options to “double up” with divider walls between roommates.
Harrison Street is familiar with local student housing. It also owns the Pavilion on Berry apartments and the Station on Washington Apartments.
While there has been a rush of apartment construction across the metro, vacancy still remains low. The average apartment vacancy rate in the Twin Cities was just 2.2 percent by the end of June, according to Marquette Advisors.
Last week, an entity associated with the Opus Group sold its new 144-unit Variant apartments in the North Loop for close to $50 million, or more than $346,000 a unit.
Nicole Norfleet • 612-673-4495