Wiedner Apartment Homes has continued its quest of making high-dollar deals for multifamily assets in the Twin Cities. According to public documents, the group acquired 4Marq Apartments, a luxury apartment building in the heart of downtown Minneapolis, for $53 million.
The 4Marq deal by Weidner is just a shade beneath the largest deal of the year so far in the Twin Cities, according to a search of public records. Arlo West End, an apartment building in St. Louis Park, went for $53.4 million.
4Marq, which was listed by Fi nance & Commerce as one of its Top Projects in 2015, is a 30-story building with 261 units. With its $53 million price tag, the cost per unit is just north of $203,000. It is located at 400 Marquette Ave. According to Hennepin County tax records, the property is worth upwards of $62.8 million.
“The company is eager to expand in Minneapolis’ downtown neighborhood and provide the community with high-end, quality rental homes,” a release from Weidner Apartment Homes said.
Andrew Babula, the director of real estate programs at the University of St. Thomas, said in an interview that the multifamily market has slowed down because of the interest rate environment. He called the purchase of 4Marq by Weidner a reflection of how the company feels about the Twin Cities market because it is buying the property for below replacement cost.
“They have been buying several properties in Uptown, in downtown Minneapolis,” he said. “Those are areas that over the last few years have struggled because of civil unrest, changes because of COVID. They are seeing that they can acquire properties at a discount in those areas. And perhaps, more importantly, they believe in the future of those areas, that those areas will come back.”
Deliveries are expected to slow for multifamily assets as higher interest rates set in. Babula said that as supply reduces, these properties are going to increase in value at a greater rate. The cost nowadays to construct a new apartment, Babula said, is well above $200,000 per unit.
“Weidner, I’m sure, saw this as a great opportunity to establish themselves further in the Minneapolis market,” he said.
The 4Marq is among the latest assets purchased by the Kirkland, Washington-based real estate firm. Previous reporting done by Finance & Commerce shows that Wiedner was the buyer in three of the six multifamily deals that surpassed $50 million.
Other deals from 2023 for Weidner include the highest deal of the year, the $111 million, 590-unit Inspire Apartments, as well as $70 million, 253-unit Nic on Fifth. The Nic on Fifth sits across the street from 4Marq.
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