FPA Buys 435-unit Community in Twin Cities Suburb
Berkadia originated a $49 million Freddie Mac loan on behalf of the buyer.
FPA Multifamily has purchased Gates at Carlston Center, a 435-unit community in Minnetonka, Minn., from RREEF Property Trust, Yardi Matrix shows. According to public records, the buyer paid $89 million for the property and obtained a five-year, $49 million Freddie Mac loan, originated by Berkadia.
CBRE brokered the transaction on behalf of the seller. The community was 96.8 percent occupied at the time.
RREEF acquired the property in 2006 for $49.7 million from Equity Residential, the same data provider shows.
Gates at Carlston Center came online in 1990 and it encompasses three buildings on 32 acres. Units are divided into one- and two-bedroom floorplans, ranging from 725 to 1,234 square feet. In-unit features include washer and dryers, along with private balconies or patios. A total of 98 percent of the units have been renovated since completion.
Common-area amenities at the Class A property include a fitness center, clubhouse, business center, swimming pool and a tennis court.
The community is at 300 Carlson Parkway, near the Two Carlson Parkway business center, which offers a host of dining and retail options. Downtown Minneapolis is some 11 miles east, while Minneapolis–Saint Paul International Airport is 21 miles away. Gates at Carlston Center is also roughly 13 miles from Millenium Edina, a 227-unit community that traded earlier this year for $75 million.
The CBRE team that secured the transaction included Executive Vice Presidents Abe Appert and Keith Collins, along with Senior Vice President Ted Abramson.
Twin Cities transactions and deliveries cool off
According to Yardi Matrix, 20 properties changed hands year-to-date through October in the Twin Cities market, amounting to 3,130 units, a significant drop from the 47 communities—or 7,945 units—that transacted last year during the same period.
This year, 1,494 units came online through July, with an additional 16,679 units under construction. Around 6,800 units are expected to be completed in 2023, a clear decline from the 12,364 units that came online in 2022, the same data provider shows.