Dakota REIT Takes 3 in Twin Cities
Two of the three properties are part of a suburban master-planned development.
North Dakota-based Dakota REIT has added to its Twin Cities multifamily portfolio with the $66 million acquisition of the Northwest Apartment Collection, three assets in Ramsey and Zimmerman, Minn. The 304-unit portfolio was purchased from Partner Apartments in a transaction brokered by Colliers.
The portfolio includes Sapphire Apartments, which was purchased for $25.5 million, Park View Apartments in Ramsey, acquired for $27.6 million as well as Depot on Main in Zimmerman, which traded for $13.5 million. All assets are low-rise buildings that opened between 2017 and 2020 and are operated by D.W. Jones Management.
Across each property, there are one to three-bedroom apartments available with in-unit laundry, stainless steel appliances and granite countertops. Community amenities include fitness centers, parking, community lounges, package lockers and playgrounds. Yardi Matrix data shows that each property is over 94 percent leased as of July.
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Both Park View, located at 14450 Rhinestone Street NW in Ramsey, and Sapphire, located at 7555 145th Avenue NW, are within the center of Ramsey’s 320-acre master planned community. These two properties make up 239 units. The development has access to downtown Minneapolis and the NorthStar Commuter Rail. Depot on Main includes 65 units located at 26125 Main Street in Zimmerman, which is approximately 40 miles north of Minneapolis.
The Colliers brokerage team included Executive Vice Presidents Mox Gunderson, Dan Linell and Adam Haydon, as well as Associate Vice President Devon Dvorak.
Twin Cities see positive absorption
Yardi Matrix data from the first quarter of the year showed that the Twin Cities market showed improvements across the board. The average asking rent was up 0.4 percent and the occupancy rate stabilized at 95 percent in this period.
More recently, a Cushman & Wakefield report from the second quarter of this year found that rent growth continues apace with steady leasing volumes, though the construction pipeline has slowed down. The same source outlines that the market absorbed 2,125 units, the second consecutive quarter for positive absorption.
While multifamily construction has slowed in the area, Greco and Eagle Ridge Partners obtained a $55.6 million loan for the second phase of a luxury project in Eden Prairie, Minn. The project, known as The Fox and The Grouse, delivered on phase one last December and is expecting tits next components to wrap construction in 2027.
This week, Venture Development Group purchased Park Villas Apartments, a 55 and over community in Waite Park, Minn., located 70 miles north of the Twin Cities. The property is a seven-acre development that underwent a large renovation in 2008.
