The Barrington Apartments in Woodbury has sold for $48.6 million in a deal that was completed last week, according to public records.
The Barrington is a four-building, 282-unit complex and was purchased by Nuveen, a subsidiary of TIAA Financial Services. The seller was Maryland-based CAPREIT.
The property is at 7255 Guider Drive, alongside the Interstate 494 corridor, and was built in 1998. CBRE Executive Vice President Abe Appert said Nuveen purchasing Barrington aligns with the portfolio the group has in the region right now. Appert said that CBRE has sold “quite a few” apartment properties to Nuveen in the past.
Appert facilitated the sale, alongside the CBRE team of Keith Collins, Ted Abramson and CBRE Dallas managing director Daniel Baker.
Appert said that CAPREIT received bids from five groups, all within the same price range, but that Nuveen paying in cash was the differentiator. Appert said Nuveen has confidence in the strength of the Twin Cities suburbs and that the acquisition is a “value-add yield play” for them.
“Nuveen/TIAA has been a very active commercial real estate investor in the Twin Cities historically,” he said in an interview with Finance & Commerce. “This is a nice testament to the success they had in this market in the past, but also the belief that this particular property in Woodbury as a location will be a nice investment for them.”
With its $48.6 million price tag and count of 282 units, Nuveen’s purchase of The Barrington is worth about $172,340 per unit. According to property tax records, the property is worth $55.5 million.
Included in the final price was $5.85 million worth of common area and office furniture and appliances, according to public documents.
CAPREIT first bought the property in January 2013 and paid more than $35 million for the first and second phases of “The Classic at the Preserve,” the former name for Barrington. The purchase marked the start of CAPREIT’s portfolio in the Twin Cities market. Appert and Collins facilitated that deal as well.
According to listings on Apartments.com, there are 19 available units at Barrington, making it around 93% leased. Appert said the property isn’t highly amenitized but has two pools and each building has a fitness room and underground parking.
“It certainly checks boxes of things that investors are looking for, as well as residents are desiring,” he said.
The Barrington transaction likely would have been the highwater mark for any other month so far in 2024 except May. Earlier this month, Weidner purchased 4Marq Apartments in downtown Minneapolis for $53 million, or $203,000 per unit. The same CBRE team that worked on The Barrington also facilitated the 4Marq deal.
Appert said multifamily and industrial assets are still the desired asset classes. On the multifamily side, according to Appert, this is because of efforts made ensuring some level of affordability in the Twin Cities.
“Because our incomes are so high and frankly a lot of these markets are still undersupplied in terms of housing options, the forward fundamentals and metrics throughout the Twin Cities, but certainly Woodbury, looks pretty positive,” he said. “That’s a big reason why we have strong interest in the market.”
RELATED:
Weidner buys up 4Marq apartments in $53 million deal
Enclave plan for Edina Macy’s Furniture site clears planning commission
Copyright © 2024 BridgeTower Media. All Rights Reserved.
Most Popular
Comments / 0