FPA Multifamily Acquires Minneapolis Historic Apartments
Built as warehouse space in 1885, the lofts were converted to apartments in 2001.
Gaar Scott Historic Lofts. Image via Google Street View
FPA Multifamily has purchased the Gaar Scott Historic Lofts, a historic loft-style property located at 614 N. First St. in Minneapolis, Minn. FPA acquired the community from previous owner Gaar Scott Limited Partnership. Two JLL Capital Markets teams represented both the buyer and the seller in the transaction, securing a three-year, fixed-rate loan for the purchase through North American Banking Co.
Gaar Scott Historic Lofts were built as warehouses in 1885 and converted to apartments in 2001, subsidized in part through historic tax credits. The property features value-add capable one-bedroom standard and loft-style units averaging 900 square feet. The apartments feature open floor plans with exposed brick and wood beams that evoke the building’s past, in addition to industrial kitchens and in-unit laundry machines. Community amenities include a community room, fitness center and parking garage. Situated at the heart of the city’s Warehouse District neighborhood, the community is located right along the Mississippi River and is within walking distance of downtown Minneapolis, near many of the city’s dining, retail and entertainment offerings.
The JLL team representing the seller was led by Senior Director Adam Haydon and Managing Directors Dan Linnell, Mox Gunderson and Josh Talberg. Senior Managing Director Matthew Lawton, Managing Director Scott Loving and Director Britta Lund acted on behalf of the seller.
Twin Cities tapers off
Twin Cities remains a strong Midwestern multifamily market, as the city has seen $923 million in transactions over the past year, according to a September 2022 Yardi Matrix report. Despite the high demand, the market’s rent growth has risen by 0.3 percent and the supply of available space has lagged, in part due to labor and supply shortages. As of July, 4,188 units were delivered–with only 257 beginning construction–an order of magnitude below the 5,207 units delivered last year, data from the report shows.
Other recent headlines in Twin Cities include Thompson Thrift’s development of The Meridian at CityPlace, a 91-unit luxury townhome community, as well as CEDARst’s landing of $170 million for the development of Duffey 2.0, a 358-unit mixed-use community.
