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Multifamily is back in the spotlight this week with four older apartment properties listed by Michelle Commercial Real Estate in St. Paul and Litchfield. Michelle is offering three properties in Lichfield, both individually and as a portfolio, which have been owned by the original developer’s property management company for 60 years.
Groveland Terrace Apartments
Groveland Terrace Apartments is a 2.5-story building with 12 1-bed, 1-bath units and 6 2-bed, 1-bath units. Rent for one bed averages $1,047, rent for two beds averages $1,255, and the average for the entire property is $1,116.
But given Groveland Terrace’s exceptional conditions for a 1960 construction and location on a leafy stretch of Grand Avenue in St. Paul’s popular McAlester-Groveland neighborhood, listing brokers Heidi Addo believes there is plenty of room for growth.
“It’s not just the location, but also who owns it,” she says. “[Whenever At Home Apartments is sold]buyers have complete confidence that they will receive a property that is well-maintained and in excellent condition.”
According to Michelle’s financial analysis, average rents for comparable properties are $1,219 for a one-bedroom and $1,429 for a two-bedroom, with an average premium of nearly $200. Future target rents for Groveland Terrace are a bit more conservative at $1,131 for one bed and $1,355 for two beds. Part of that is due to St. Paul’s slow rate of rent growth, Addo said.
Still, there’s a lot to recommend in Groveland Terrace. “Elevated common areas,” simple but clean décor, a new boiler and parking spaces in the back (just under one for each unit) are something the new owners could start charging for, Addo said. I say. Said.
Groveland Terrace also attracts students, even though it is less than a mile and a half away from three institutions of higher learning, with approximately 10,000 undergraduate students between them. Addo said it was not a real thing. Young and loud crowd. Most of the current tenants are young professionals attracted by the convenient location, below-market rents, and off-street parking.
Given the area’s residential density, Addo said, “off-street parking is a very desirable element for the residents who live here.”
Address: 1787 Grand Ave, St. Paul
Type: Multifamily
Square feet: 11,256 square feet
Suggested price: Not disclosed
Tax amount: $2.02 million (2024)
Seller: Grand Avenue ASMC, LLC (St. Paul)
Property broker: Michel Commercial Real Estate
Richland Court Apartments in Richfield, 1300-1324 78th St. E., is one of three apartment buildings being marketed in the city by Highland Management Group. (Courtesy photo: Michelle Commercial) Highland Management Group Apartment Portfolio, Litchfield
It is rare for a multifamily community to remain under the same ownership for 60 years. It’s even rarer if that owner is the original developer, and even rarer if that owner-developer delivers three at once.
But that’s what is being considered along busy Interstate 494 in Litchfield, where Highland Management Group is building 236 apartments and three townhomes, according to Hennepin County tax records. He has sold a portfolio of properties worth well over $20 million.
Hyland is also willing to sell the New Orleans Court, Richland Court and Winton House properties privately, said listing agent Heidi Addo. But the portfolio option is attractive because their proximity to each other allows for more cost-effective management, she added.
Highland is selling properties elsewhere in the Twin Cities to “level up” to newer multifamily stocks, but Addo cautions against reading too much into its motives.
“These properties are doing very well,” she said, pointing to their central location, strong local employment base and easy access to highways. “The workforce housing segment is doing very well in (Litchfield), and there are no issues with occupancy rates.”
The average rent across the portfolio is $1,265, about $100 less than the submarket average of $1,363, according to the offering memorandum. Addo said “light capital improvements” like new paint, new lighting and installing luxury vinyl plank flooring instead of carpet could be enough to get the new owner there. said.
New Orleans Court Apartments & Townhomes
Address: 50 78th St. W., Litchfield
Type: Multifamily
Square Feet: 2.42 acres (lot)
Suggested price: Not disclosed
Tax amount: $8.63 million (2024)
Seller: Highland Management Group
Property broker: Michel Commercial Real Estate
Richland Court Apartments
Address: 1300-1324 78th St. E., Litchfield
Type: Multifamily
Square Feet: 3.28 acres (lot)
Suggested price: Not disclosed
Tax amount: $10.73 million (2024)
Seller: Highland Management Group
Property broker: Michel Commercial Real Estate
Winton House
Address: 7500 and 7544 Cedar Ave., Litchfield
Type: Multifamily
Square Feet: 1.64 acres (lot)
Suggested price: Not disclosed
Tax amount: $4.73 million (2024)
Seller: Highland Management Group
Property broker: Michel Commercial Real Estate
(Entire portfolio)
Addresses: 50 W. 78th St., 1300-1324 E. 78th St., and 7500 and 7544 Cedar Ave., Litchfield
Type: Multifamily
Square Feet: 7.34 acres (3 sites)
Suggested price: Not disclosed
Tax amount: $24.09 million (2024)
Seller: Highland Management Group
Property broker: Michel Commercial Real Estate
