A Utah group purchased two affordable housing apartment complexes in Champlin for a combined $23.2 million late last month, according to recently released certificates of real estate value.
Elm Creek Apartments and Champlin Drive Apartments were sold for $11.4 million and $11.8 million, respectively. Plymouth-based Dominium sold the apartments to Provo, Utah-based Peak Capital Partners.
Each complex has two buildings and was built over 30 years ago. With 72 units each, Elm Creek sold for $158,333 per unit while Champlin Drive sold for $163,888 per unit.
Mike Voss, Dominium’s director of communications, said in an email statement the sale was a part of a natural portfolio management process and that they were selling “when and where it makes sense.”
Elm Creek is located at 11719 Champlin Drive, and Champlin Drive Apartments is located at 11817 Champlin Drive. According to a LinkedIn post from CBRE’s Jeff Kunitz, who brokered the deal, both properties are enrolled in the Low-Income Housing Tax Credit program.
Peak Capital did not respond to requests for comment on this story. According to its website, this is not the group’s first venture into the Twin Cities market. Peak Capital owns property in 21 states, and while it does not provide a full list of its properties, Summit Townhomes in Burnsville is highlighted on its website .
The group specializes in workforce and affordable housing within “growth markets” and looks to purchase for “strong, long-term growth opportunities,” according to its website.
The combined price tag of the two properties puts the transaction as one of the top 15 multifamily trades to happen this year.
Dominium also sold a Stillwater property for $14 million last month, as previously reported by Finance & Commerce.
Andrew Babula, director of the Real Estate Program and the Shenehon Center for Real Estate at the University of St. Thomas, said in a June interview that out-of-state buyers have been attracted to the Twin Cities market likely because interest rates make coastal purchases harder to pencil out.
“An already expensive market gets more expensive due to higher interest rates these days,” Babula said. “So some of those buyers are seeing Midwest markets or some of the stable, smaller markets like Minneapolis to be good investments because they feel they can buy at a better price point.”
It also marks another out-of-state firm entering further into the Twin Cities market. Out of the top 10 sales of the year, five have been out-of-state investors. This includes the largest transaction of the year, NordHaus, which sold for $74.25 million last month.
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