Minneapolis-Area Community Secures $18M Refi
Working on behalf of TE Miller Development, NorthMarq arranged the Freddie Mac loan for a 114-unit property in Edina, Minn.
A $17.5 million loan was secured for the 114-unit York Place Apartments in Edina, Minn., roughly 12 miles from Minneapolis. NorthMarq’s Dan Trebil arranged the 10-year loan with five years of interest that’s only followed by a 30-year amortization schedule for the apartment community with Freddie Mac. The loan will be used to refinance existing debt.
READ ALSO: Twin Cities Development: Mixed Outlook
The property located at 3121 69th St. W. is roughly 10 miles from Minneapolis. According to Yardi Matrix data, York Place offers studios and one- and two-bed apartments with an average rent of $1,602. The 2008-built property is fully occupied. The building’s amenities also include a fitness center, a community room, a private patio and 200 parking spaces.
Freddie Mac has shown interest in the area as they also provided a $20 million construction loan for another Minnesota property earlier this year.
Job Growth Drives Demand
The Minneapolis-St. Paul multifamily market has remained resilient, despite a slowdown in employment growth across the metro due to a tightening labor market, according to a recent Yardi Matrix report. Rents increased by 3.1% year-over-year in May to an average of $1,307, $135 below the national figure. However, strong in-migration levels and inflating home prices are projected to further boost demand for rental apartments in the metro.
Despite extreme weather events and construction labor shortages, 6,715 units came online last year, with the bulk of new developments concentrated near or within downtown Minneapolis. Some 9,700 units were under construction in the metro as of May, most of them in Class A projects.