The Schurmeier Lofts, a 42-unit apartment building in St. Paul, has been sold to the Terra Investment Group and the Bedford Property Group for $9.3 million, according to MRG Realty Partners.
The building was owned by CCI Properties which bought the building back in 2018 when it was condemned. CCI Properties’ Ed Conley rehabilitated the property, which was originally a wagon manufacturing warehouse built in 1885.
With its 42 units, the lofts sold for around $220,550 per unit. The property is located 330 Ninth St. E. in St. Paul’s Lafayette area.
MRG Realty Partners founder Doug McNicoll and MaryPat McNicoll facilitated the transaction between CCI and Terra. Doug McNicoll said he was at the property when Conley bought the building in 2018 when the city was considering demolishing the building.
“You have to understand, there was mud on the ground, walls were sideways and almost falling down, the roof had massive leaks in it,” Doug McNicoll said. “There was junk everywhere, it was a complete and utter disaster. I literally said to Ed, ‘Oh my gosh, Ed, what have you just done to yourself?’”
Conley said he was also nervous after purchasing the property, calling it “totally trashed” at the time of purchase and said that people would sometimes sneak into the property “doing what they shouldn’t be doing.”
The rehabilitation process was difficult, Conley said, with crews stripping brick and doing work from the start of the day until 10 at night. But Conley said it was worth it because he felt he was helping out the neighborhood, saying that it had been a problem property.
The process included installing a new roof, new windows, granite counters, plumbing fixtures, and lighting.
“I know the building, it’s like 55,000 square feet and every inch of that building has been redone,” Conley said.
The building is fully leased, according to Conley. McNicoll said that the building was valuable for Terra and Bedford because of the building’s brick exterior, calling it a “classic look.”
“It’s a very scarce commodity around the country,” McNicoll said. “People understand that and appreciate the quality of workmanship on top of all of the other redeeming values in our city. It’s an irreplaceable asset class.”
This exchange comes as the average price per unit is lowering and transaction volume is slowly increasing. The Class A average price is $224,240 per unit, according to a first quarter report from Michel Commercial Real Estate and the number of transactions is up 37.5% compared with the first quarter of last year. St. Paul’s multifamily vacancy is around 4%, the report says.
Both buyers are Los Angeles-based groups. According to the Michel report, there has been an influx of out-of-state buyers entering the Twin Cities multifamily market, reflecting the good schools and quality of life presented by Minnesota. McNicoll said these qualities played a factor in the purchase by Bedford and Terra.
“We have some tremendous real estate fundamentals going for us,” he said. “Cost of living is lower compared to other towns, we have good public transportation and it’s getting better.”
RELATED:
Cushman broker expects big rent jumps for small industrial spaces
New lodging, ‘short course’ planned for Hazeltine
Copyright © 2024 BridgeTower Media. All Rights Reserved.
Most Popular
Comments / 0