An apartment building in Blaine that has over 145 of its 152 apartment buildings leased up has been put on the market, Michel Commercial Real Estate said.
The property, Glenfield Park Estates, was listed by its builder Kueper Architects & Builders, which completed the development in 2023.
Heidi Addo, a vice president at Michel, said the property has an asking price but declined to share it. The property is located at 8585 Groveland Court in Blaine and is being marketed by Michel.
Amenities at the property include in-unit laundry, a fitness center, a movie theater and an outdoor pool and children’s play area. Addo said in an interview Wednesday that the amenities, combined with the quality construction of the property and population growth being experienced in Blaine is what brought such a fast lease-up process.
As for who Michel is targeting with their marketing, Addo said they are hoping for someone who wants a suburban quality property and is an institutional investor.
“There are local, high net-worth firms, high net-worth investment groups here in the Twin Cities that are institutional quality,” she said. “They’re dealing in deals that are over $30 million and they have many assets, doing a lot of deals, constantly buying. That is definitely the buyer profile for the property, but it is being broadly marketed to all qualified buyers that would be interested in this.”
Matt Mullins, the vice president of Maxfield Research, said the final price would likely depend on the buyer profile and the financing method used, but he would guess the property would trade for between $185,000 and $190,000 a unit, making the final price somewhere around $28 million.
“This is probably a little bit more of the ‘Class B plus,’” Mullins said. “New, market-rate, but targeted at workforce housing demographic. The rents reflect that.”
Addo said Kuepers is selling the property because building, leasing up and selling a property is one of the two typical avenues the group takes.
“This is their bread-and-butter,” she said. “They build properties, they get them full, they either keep them, they run them very well or they sell them. So this is a rinse-and-repeat for them because they’ve done it so many times.”
Addo said another reason the Brainerd-based group is selling is because they want to free up staff to work elsewhere on other projects they are pursuing. Kueper is developing projects in Mankato as well, according to the Mankato Free Press.
“They are really working to not slow down as every other developer is slowing down,” she said. “They’re keeping their shovels and the dirt and they’re building because on the other side of all this construction challenge, we’re still going to need housing and the people that keep doing it are really going to see that fruit.”
Two-thirds of Glenfield is made up of two-bedroom units, Addo said, the rest are one-bedroom units. According to a listing from Apartments.com, rent ranges from $1,555 to $2,025. There are ways for the future owner to add to the net operating income, Addo said. Parking is currently free, and gas and heat are not charged toward tenants.
Mullins said apartments taking a loss on some of the utilities is rare.
“It could be a strategy to help fill those units quicker and have a much higher leasing velocity during the pre-leasing and initial lease-up period,” he said. “But it’s pretty rare today to see that. The vast majority are going to bill that back to the tenant.”
Addo said the Blaine market has been receiving a lot of deliveries in the past year. Suburban markets have been on the receiving end of a lot of investment recently, Addo said. In June, Plymouth saw the Creekside Apartments trade hands between Bader and Heartland Realty Investor Inc., for $46 million. A month earlier, the Barrington Apartments in Woodbury sold for $48.6 million to Nuveen.
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