In a deal that easily lands at the top of the multifamily transactions completed so far this year, the NordHaus apartment building has been purchased for $74.25 million, according to a certificate of real estate value that went public last week.
The building at 315 First Ave. NE in Minneapolis was sold by Quarterra, a North Carolina company, to Trinity Property Consultants, an Irvine, California-based business connected to FPA Multifamily.
Quarterra’s parent company, Lennar Corp., completed the 280-unit building in 2018, and was listed as one of Finance & Commerce’s Top Projects of that year. The property consists of a 20-level tower and a six-story low-rise. It had a construction cost of $75 million.
Representatives from FPA Multifamily and Quarterra did not respond to requests for comment for this story.
Matt Mullins, vice president at Maxfield Research, said the property is a highly amenitized class A asset in a strong neighborhood. Lately, Lennar, Quarterra’s parent company, has been in a “sell mode” where they have been unloading much of their portfolio, he said.
Lennar also built and still owns the 20-story Odin apartment building next to NordHaus.
To build this building today, Mullins said Monday, it would likely cost around $400,000 a unit.
“I feel like on the buy side, there’s a good value proposition,” Mullins said.
With its 280-unit count, the price-per-unit sits at $265,178. Trinity has previous forays into the Twin Cities metro. One of note is the Arrive Minnetonka apartment building, which was purchased in late October 2023 for $89 million, or $204,600 per unit. They also own a number of different “Arrive” properties in the metro, including Arrive Loring Park, also in Minneapolis.
Mullins said the likely strategy of Trinity and FPA is to slowly move more into the Twin Cities metro market, and he expects more out-of-state firms will follow suit to find reliable, in-demand assets.
“I think we’ll continue to see more outside money coming into town, given the fact that we are still relatively affordable compared to the markets across the country that are still a lot more expensive from an acquisition standpoint,” Mullins said.
Mullins said that the North Loop and northeast neighborhoods of Minneapolis have been more of a bright spot for transactions and renting in the city, which likely helped it command a higher price point.
This transaction raises the high price point in the multifamily market for the year by about $20 million. According to Finance & Commerce reporting, the next highest transaction was $53 million for a West End apartment in St. Louis Park and Weidner’s purchase of the 4Marq apartments. After that the Barrington in Woodbury and the Creekside Apartments in Plymouth sold for $48.6 million and $46.6 million, respectively.
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