Shoregate Picks Up Luxury Apartments in Minneapolis
The property was previously owned by a major institutional investor.
Shoregate Management has Acquired Flux Apartments, a luxury multifamily community located in Minneapolis’ Uptown neighborhood. According to The Business Journals, the asset traded for $36.1 million. The seller was Nuveen Real Estate. A JLL Capital Markets led by managing director Josh Talberg and Director Joseph Peris represented Nuveen and procured Shoregate as buyer.
A purchase price was not disclosed. According to Yardi Matrix, the property last traded in 2019, when Nuveen bought it from Greco Properties for approximately $56 million.
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Completed in 2012, the 216-unit, six-story Flux Apartments represents a rare, fully union-built luxury residential community. Apartments are offered in 27 distinctive floor plans that include studios, one- and two-bedroom residences. Units range from 510 to 1,417 square feet in size, averaging approximately 760 square feet. Flux Apartments stood at 98.6 percent occupied at the time of the transaction.
Apartments feature private balconies or patios, in-unit washer-dryers, above-standard ceiling heights, high-speed internet access and hardwood floors in select units.
Among the common-area amenities are an outdoor pool and spa, fitness center, yoga studio, outdoor courtyard, dedicated dog park and wash stations. Ample covered parking is offered in an underground parking garage.
Flux apartments is located at 2838 Fremont Ave. South, just southwest of the city’s downtown district. Situated between downtown Minneapolis and the Minneapolis Chain of Lakes, Flux Apartments is situated four blocks from the lakes, providing immediate access to a six-mile multi-use trail called the Midtown Greenway.
The Midtown Greenway connects parks, businesses and cultural venues between the lakes and the Mississippi River.
Twin Cities take off
Flux Apartments is located within an 8- to 10-minute drive from five transit or subway stations, and a 10-minute drive from the commuter rail station at Target Field, home of the Minnesota Twins Major League Baseball team. Three shopping centers are situated within a 4- to 7-minute walk, and five parks or recreational areas within a 10- to 16-minute walk.
Investors have been warming up to the Twin Cities multifamily market, a trend owed in part to the area’s strong fundamentals. Yardi Matrix data shows that the metro’s asking rents were up 0.4 percent year-over-year as of June, while occupancy leveled off at 95 percent.
In late August, Dakota REIT closed on the $66 million acquisition of the Northwest Apartment Collection, a three-property, 304-unit portfolio of multifamily communities located in Ramsey and Zimmerman, Minn.
That same month, a joint venture partnership between Flux’s previous owner and Eagle Ridge Partners snagged $55.6 million in financing for the second phase of a suburban Twin Cities development.
